Why Volkswagen's future depends on the ID.2

It will be at the heart of the market and will have top-of-segment range and performance, with a price below £21,000. It will have to sell a lot

By: Francesco Barontini

Jan 7, 2025 at 5:55am ET

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The future of the Wolfsburg brand depends on the Volkswagen ID.2. This is said by Martin Sander, head of sales for the brand, who explained in no uncertain terms: 'For the transition to be successful, we must have more affordable electric cars.

The current times, as you know, is not easy. Volkswagen is coming to terms with a major reorganisation plan that will lead to the cutting of thousands of workers and, looking at the sales figures for electric cars in Europe, some models have performed worse than expected.

However, in the face of a landscape that remains complicated, there are also hopeful signs, and the ID.2 could be the right car at the right time.

The strategy is starting to work

In an interview with Automotive News Europe, Martin Sander said that, with the data in hand, the green transition is gaining ground. Sander says that even the ID.7 is doing better than the Passat in some markets, such as Germany, and that overall the numbers are growing.

Martin Sander

Photo by: Volkswagen

"The ID.2 will disrupt the market," he explained, "Our electric plan is starting to work. We have worked hard to ensure that all models in the ID family are at a very high level, both in terms of quality and performance. These efforts are starting to pay off. In Germany we are the market leader, ahead even of Tesla. In October we also overtook the American manufacturer in Norway. These are tangible examples that the strategy is paying off.

Problems to solve

However, not everything is rosy. The new emission limits are forcing manufacturers to accelerate sales of electric and plug-in cars. Volkswagen has a wide range, but the road ahead is tough for everyone. In addition to the CO2 challenge, there is also work to be done on profitability.

'There are markets, segments and sales channels where we are profitable,' said Sander. 'We are doing everything to grow them. But not all electric business is in the positive. Our ambition is to increase the profitability of all zero-emission vehicle businesses and to do better with them than we do with petrol cars.

The MEB Entry platform of ID.2

It takes commitment and investment to convince customers to switch to electric. "There is great interest from motorists for new technologies and electrified powertrains, but we have to accompany them to change their opinion for good.

A car at the centre of the market

And this is where the ID.2 comes in. Sander has no doubts: 'The ID.2 will be a game changer. First of all because it is a small car and will fit into the segment that does the most volume in Europe. Then because it will be priced below €25,000 (approx. £21,000) and, at this moment, it could be an affordable alternative to other models.

Volkswagen ID.2all

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The ID.2 will also be produced with new, more efficient methods, which will allow good margins. And good margins combined with good volumes is the ideal combination for any company, not just Volkswagen.

The ID.2, in a way, represents the link between the current range of electric cars and the one that will arrive by the end of the decade. The one, in short, that will be born from the Trinity project and will exploit the new SSP platform. The electric Golf will also come from there.