In March, VW unveiled the specifics of a fully-electric ID.2 currently in development, set to be priced below 25,000 euros. The vehicle is scheduled for launch by 2025, boasting a 280 mile (450-km) range and a battery capable of charging from 10 percent to 80 percent in approximately 20 minutes. While the company had previously mentioned working on a 20,000-euro vehicle, no additional details were provided at that time.

Volkswagen has yet to finalize its decision on manufacturing a 20,000-euro ($21,714.00) electric car. However, CEO Oliver Blume expresses confidence that the company can achieve this milestone by the second half of the decade. Blume highlighted the key strategy for lowering electric car prices, emphasizing the reduction of battery costs.

Speaking at the Sueddeutsche Zeitung Wirtschaftsgipfel conference in Berlin on Wednesday, Blume outlined the company’s initiative to develop a standardized battery cell, anticipating a 50% reduction in battery costs as a result.

Blume declared that is is VW’s duty to introduce products to the market at an appropriate price. Having already engaged early adopters with electric cars, VW’s current focus is on persuading consumers who lack the option to install a charging station at home to embrace this technology.