Volkswagen is set to transition from its current ID naming convention to more traditional names for its electric vehicles. This strategic shift aims to simplify the lineup and make it more consumer-friendly. The change will begin with the production version of the ID.2all in 2026, marking a significant departure from the alphanumeric branding that has characterized Volkswagen's EVs since 2017. Martin Sander, a key figure at Volkswagen, emphasizes the importance of this move, suggesting established nameplates might reappear in the EV lineup.
Additionally, Volkswagen plans to leverage falling battery costs and cost-cutting measures to produce affordable EVs like the ID.2all and ID.Every1. These models are expected to enter new price ranges, starting at €25,000 and €20,000 respectively, appealing to a broader audience. Despite challenges in markets like China, Volkswagen remains confident in the dominance of electric vehicles over internal combustion engines, focusing on long-term strategic growth.
Volkswagen's decision to adopt traditional names for its electric vehicles marks a pivotal moment in its strategy. By phasing out the ID prefix, the company seeks to address market confusion and enhance accessibility. Starting in 2026, this transition will introduce familiar monikers, potentially reviving iconic names such as Polo, Lupo, or even creating entirely new ones. This approach aligns with Volkswagen's vision to create a more relatable product line.
The rationale behind this shift stems from feedback indicating that consumers find the existing alphanumeric designations perplexing. Martin Sander, Volkswagen's Board Member, underscores the significance of this change during an interview, revealing that upcoming models will not carry the ID prefix. Instead, they will embrace conventional nomenclature. For instance, the ID.2 slated for release in 2026 could resurrect the Polo name, celebrating its half-century legacy. Similarly, the ID.1, anticipated in 2027, may draw inspiration from past models like Lupo, Fox, or Up!, or introduce a fresh identity. This renaming initiative aims to bridge the gap between traditional enthusiasts and modern EV adopters, ensuring a seamless integration of heritage and innovation.
Besides rebranding efforts, Volkswagen is committed to producing cost-effective electric vehicles. Through advancements in battery technology and stringent cost management, the automaker targets competitive pricing for its upcoming models. Notably, the ID.2all and ID.Every1 are poised to redefine affordability within the EV segment. With projected starting prices of €25,000 and €20,000, these vehicles aim to attract budget-conscious buyers without compromising quality or performance.
Martin Sander highlights the meticulous financial scrutiny driving these initiatives, asserting that no expense will be spared to ensure profitability from inception. Volkswagen employs innovative production techniques to achieve this balance, leveraging lessons learned from previous projects. Furthermore, the company remains optimistic about the global adoption of electric vehicles, attributing their success to superior product attributes compared to traditional combustion engines. In regions like China, where competition intensifies due to lower-priced alternatives, Volkswagen adopts a patient stance, prioritizing long-term growth over immediate market share gains. By introducing a new generation of market-specific EVs starting in 2026, Volkswagen aims to solidify its leadership position while navigating the complexities of transitioning towards electrification. This comprehensive strategy reflects Volkswagen's dedication to leading the automotive industry into a sustainable future.
The electric vehicle (EV) market in China has experienced remarkable growth over the past month, with significant increases in production and sales. In April 2025, approximately 1.23 million new energy vehicles (NEVs) were sold, representing a year-on-year increase of about 44%. Notably, NEVs accounted for roughly 50.8% of all passenger cars sold during this period, marking a major milestone in China’s transition to electrified transport. The overall rise in passenger car sales by around 14.8% underscores the robust demand for NEVs despite economic challenges.
Government policies continue to support EV expansion through subsidy programs for vehicle trade-ins and initiatives such as integrating EVs with the power grid. Chinese automakers like BYD, Nio, and XPeng have reported notable milestones, demonstrating strong domestic and international growth. BYD dominates the market with its extensive lineup, while Nio and XPeng showcase innovation and diversification strategies, contributing significantly to China's rising influence in the global auto industry.
China's government continues to implement policies that bolster the adoption of electric vehicles, ensuring sustained market growth. Subsidy programs for vehicle trade-ins have been extended, offering incentives for consumers to replace older cars with cleaner models. By late April, the government's NEV trade-in scheme had facilitated 2.71 million car replacements, emphasizing the importance of transitioning to more sustainable transportation options. These subsidies have played a crucial role in maintaining consumer confidence amidst external economic uncertainties.
In addition to financial incentives, China is pioneering projects that integrate EVs with the power grid, known as vehicle-to-grid (V2G). This initiative allows EVs to serve as distributed batteries, feeding electricity back to the grid during peak demand and adjusting charging times off-peak. Major cities such as Beijing, Shanghai, and Shenzhen are participating in these V2G pilots, which aim to enhance grid stability and energy efficiency. By leveraging the growing EV fleet, these projects align with China's broader strategy to merge clean transportation with renewable energy goals, ensuring that rapid electrification does not overwhelm power systems.
Chinese automakers are at the forefront of the EV boom, with established players and startups reporting significant achievements. BYD, the largest EV manufacturer in China, sold approximately 372,000 vehicles in April alone, achieving nearly 30% of China's NEV market share. The company's diverse lineup caters to various price segments, from affordable compacts to higher-end hybrids. Domestically, BYD's success is complemented by its expanding export footprint, evident in its plans to establish a European center in Hungary. This facility will serve as a hub for sales, after-sales service, testing, and localization of models for Europe, reinforcing China's role as an export powerhouse for electric vehicles.
Nio and XPeng have also demonstrated substantial growth and innovation. Nio reported a sharp rise in deliveries, reaching 23,900 vehicles in April, a 53% increase year-on-year. The company's expansion into new market segments, including the launch of the ONVO sub-brand and the FIREFLY compact model, highlights its strategy to target different customer bases. Meanwhile, XPeng delivered 35,045 EVs in April, marking a 273% year-on-year surge. This growth is attributed to successful new product launches and the introduction of affordable models like the "Mona" M03. Both companies are investing heavily in technology and branding, showcasing cutting-edge projects and unveiling advanced features at global events. Their efforts underscore the intense competition and rapid expansion within China's EV industry, driving technological innovation and business model evolution while capitalizing on strong domestic consumer demand.