With growing regulations on cars and the rise of the more expensive electric vehicles manufacturers fear one type of car is nearing extinction: the inexpensive hatchback.
“Volkswagen wants to make electric mobility available for as many people as possible. So we want to sell cheaper electric cars,” said Hans-Dieter Pötsch, Chairman of the Supervisory Board of VW, in an interview with the German newspaper, Welt am Sonntag.
However buying a Citroën C1, Peugeot 108 or something comparable for some €10,000 will become very difficult due to changes in the industry, New Mobility reports.
Pötsch also sees EU emission regulations as playing a factor in rising costs, due to a need to move towards hybrid cars to meet the goals. “Electric will remain too expensive, and the surplus cost of around 3,000 euros for hybridization means that small city cars will rise in price by 20%. That’s too much,” he added.
Electric cars continue to increase in popularity in Europe; in the first six months of 2019, sales of electric cars doubled in the Netherlands and in July 2019, 96,000 electric cars were sold in Europe, 29% more than in July 2018.
According to an analysis by Transport and Environment, the production of electric cars will multiply six-fold between 2019 and 2025, due to the EU’s strict CO2 reduction requirements for the car industry.
The Brussels Times
Correction: This story has been updated to clarify statements made by Pötsch