- Volkswagen is in early talks with Renault to co-develop a budget EV, according to sources close to German newspaper Handelsblatt.
- Talks are at a very early stage and nothing has been announced by either company yet, but a sizable annual production of around 250,000 vehicles is expected if the car comes to fruition.
- Volkswagen has already announced a Volkswagen ID.2 set to arrive in 2025, starting at under €25,000.
Reuters reached out to both companies, with Volkswagen refusing to comment, but Renault responded noting that cooperation is “necessary” in order to be competitive within the budget EV market. However, nothing has been finalized between the two automotive giants. This is yet another sign of the budget EV market hotting up. Elon Musk updated his company’s progress on the arrival of the cheapest Tesla yet just days ago. That’s expected to have a similar price tag to this potential collaboration between Volkswagen and Renault.
This potential partnership would help keep the price of this model down, as it’s not the first time we’ve seen Volkswagen team up with another manufacturer for EV development. To produce a budget EV exclusively for China, VW is teaming up with local manufacturers SAIC and FAW to help keep costs down. Meanwhile, the upcoming all-electric Ford Explorer will be based on Volkswagen’s EV underpinnings. Renault itself has already expressed interest in producing a cheap EV for the masses, with the Twingo returning in full-electric form with a sub-€20k price tag, some time in 2026. However, this is set to be built on Renault’s in-house platform, as opposed to this joint venture which is only in early discussions for now.