Volkswagen Launches €28,000 ID. Cross EV as Europe’s Electric Vehicle Demand Accelerates

Volkswagen AG has launched the new ID. Cross, a compact electric SUV priced at approximately €28,000 ($32,000), as the German automaker strengthens its position in Europe's fast-growing electric vehicle market. The company announced on Wednesday that the model is now available for order, while a more affordable version equipped with a smaller battery pack will be introduced at a later date.

The ID. Cross joins Volkswagen’s expanding portfolio of budget-friendly electric vehicles, alongside the Volkswagen Polo EV, Cupra Raval, and Skoda Epiq. All four models will be built in Spain, allowing the automaker to benefit from lower manufacturing costs compared with production in Germany.

Volkswagen’s latest launch comes as demand for electric vehicles continues to accelerate across Europe. Battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) recorded a 29% increase in sales during the first five months of the year, accounting for more than one-third of all new vehicle registrations. Government incentives in major markets such as Germany and France, coupled with higher fuel prices driven by ongoing Middle East tensions, have encouraged more consumers to switch from gasoline-powered cars to electric models.

At the same time, European automakers are facing intensifying competition from Chinese brands. Companies including BYD and Chery Automobile captured a combined 10% share of the European auto market for the first time in May. Chery’s Jaecoo 7 SUV also ranked as the third best-selling model in the United Kingdom during the first half of the year, highlighting the growing appeal of Chinese vehicles.

Volkswagen CEO Oliver Blume recently acknowledged that the company underestimated the speed at which Chinese manufacturers would gain market share in Europe. The region has become increasingly important for Volkswagen as vehicle sales weaken in China and efforts to boost demand in the United States remain challenging.

The launch also comes amid broader restructuring efforts. Last week, Volkswagen disclosed plans that could involve cutting up to 100,000 jobs worldwide and potentially shutting down manufacturing facilities in Germany as it works to improve profitability and adapt to changing market conditions.