German automaker Volkswagen announced plans to release an electric vehicle priced around 20,000 euros (approximately 30 million won). This is part of a strategy to counter China's low-cost electric vehicle offensive.

According to the Wall Street Journal (WSJ) and others, Volkswagen unveiled images of the new electric vehicle model 'ID.1' on the 6th (local time) while announcing its five-year plan.

Image of the new electric car model 'ID.1' unveiled by Volkswagen. /Courtesy of Volkswagen website capture

Volkswagen plans to produce the ID.1 at its Wolfsburg plant, which will become a production base for small electric vehicles, by introducing new processes. The British daily Telegraph noted that the ID.1 appears to be a hatchback model.

Thomas Schäfer, Volkswagen's Chief Executive Officer (CEO), said that the ID.1 will be "an affordable yet high-quality, profitable electric vehicle for Europe," adding that "it will be an attractive entry-level model for a wide range of consumers."

Volkswagen and the German automobile industry are struggling against a barrage of low-cost electric vehicles from China. It is interpreted that Chinese BYD surpassed American Tesla in the UK market for the first time last month, intending to regain competitiveness with low-cost models.

Amid sluggish demand for electric vehicles in Europe and intensified competition from Chinese companies, Volkswagen plans to cut 35,000 jobs by 2030. About 100,000 Volkswagen workers protested by striking last year in response to the company's decision to close some German factories.

According to some securities analysts, the number of electric vehicles sold across Europe last year recorded a 3% decrease compared to the previous year, totaling 3 million units. In Germany, the sales of electric vehicles from January to November last year fell by 26% to 347,048 units.

Automobile journalist Quentin Wilson assessed that "the new Volkswagen car could be a killer of Chinese electric vehicles." Dan Caesar from the electric vehicle information company "Electric Vehicle UK" stated that "low-cost electric vehicles are a crucial area for existing automakers to gain competitiveness at this time."