Volkswagen plans modest EV price premium over internal-combustion cars | Autoblog

Last month, Thomas Ulbrich, the Volkswagen brand’s board member for E-mobility, spoke to an audience in Dresden, Germany, about VW’s plans for pure electric vehicles. One of the nuggets we noted was Ulbrich saying that the first EV, the I.D. hatchback that could be called Neo, will undercut the Tesla Model 3 by roughly $8,000. We’ll assume he means the base $35,000 Model 3, but regardless, that comparison was mere detail: Ulbrich said the brand’s overall strategy is selling EVs “priced at the level of a comparable diesel car.”

Before diesel became the Voldemort of fuels, buyers understood the nominal premium they paid for diesel’s rewards. If Volkswagen maintains the same MSRP restraint with an EV, the automaker has a much better chance of powering its goal of selling 1 million EVs across the VW, Audi, Skoda and Seat nameplates by 2025.

Doing the math on what this kind of pricing strategy could look like, we can examined the diesel price spread pre-Dieselgate. The 2015 Volkswagen Jetta 1.8T SE FWD with a five-speed manual ran $18,995, whereas the TDI SE FWD with a six-speed manual started $21,640, a 9 percent increase. The standard 2015 Touareg V6 Sport w/Technology AWD cost $48,755, while the Touareg TDI Sport w/Technology AWD cost $52,245, a 7 percent upcharge. If Volkswagen indeed has this kind of single-digit gap in mind, then its tagline for its coming EVs would prove true: “electric vehicles for millions, not millionaires.”

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Volkswagen plans modest EV price premium over internal-combustion cars – Autoblog.