Volkswagen will build alone, Renault will work with the Chinese

If there is an electric car that scares the top leaders of the European car industry, it is the BYD Seagull, or Dolphin Mini as it will be called when it hits the continent in 2025. Modern and spacious Mini, with a range of over 300 km, active safety, and a price in China of about $10,000. In Europe it will be more expensive, depending on how much the tax on Chinese imports to the continent will increase, and it will still present a cost threshold that local manufacturers are not yet able to meet in relation to electric vehicles.

The cheapest electric car in Europe is the Dacia Spring, which costs 21,000 euros, but despite the European brand, it is manufactured in China. The new Citroen e-C3 will start at 23,000 euros, and the French have promised to launch a version with a shorter range at 20,000 euros as well. Stellantis will start assembling the Leapmotor T03 in September at the Fiat plant in Poland after acquiring 20% of the Chinese company, and it is also expected to be sold for about 20,000 euros, which is the price threshold the industry is trying to stand around.

Renault promised to produce cheaper and more advanced electric vehicles than the Spring, the modern successor to the Twingo. Volkswagen, which announced the production of a supermini electric car for 25,000 euros in 2026, the ID.2, promised that a smaller and cheaper version, the ID.1, will follow. The two companies held discussions on the development and possibly even joint production of both models, but these ended without agreements, and each recently announced their separate ways.

Volkswagen announced that they will develop and manufacture the future ID.1 themselves, with production scheduled to begin in 2027. The company did not specify where the production will take place, but the car is expected to have a sister version carrying the SEAT emblem and will be the first electric vehicle of the Spanish brand, which has recently undergone a revival. "The future is electric," said Volkswagen CEO Thomas Schäfer. "In order to spread the electric message, we need attractive cars, especially in the affordable models. Our car will set new standards in technology, design, and customer experience."

On the other hand, Renault announced that they will develop the car with a Chinese partner whose name was not disclosed, although production will take place in Europe. A joint development could also serve as a code for use on an existing platform, saving time and money. However, alongside production in Europe, Renault will also need to rely on as many non-Chinese components as possible, due to the European Union's intention to dramatically increase not only the tax on cars imported from China, currently standing at 10%, but also on components manufactured there. In the United States, a 100% tariff was recently approved on Chinese electric vehicles.