Prices of small electric to shoot up significantly: VW’s chairman

With next generation electromobility options coming packed with sensors and electronics, input costs have rise significantly. Adding to that pressure is the EU’s push to meet tougher-than-expected greenhouse gas emissions targets which aims to bring it down by 37.5% by 2030.

In an interview to German newspaper Welt am Sonntag, Volkswagen’s chairman Hans-Dieter Poetsch stated, the electrification of vehicles will make cars significantly more expensive, which means not everyone will be able to afford them.

Volkswagen is still reeling from its 2015 diesel-emission cheating scandal and is pushing for the electrification of its models in order to meet tough European emmissions-cutting targets.

“We have the clear goal of making electromobility accessible to a broad section of the population, that is to make it affordable,” said Hans-Dieter Poetsch while adding, this would make it difficult to retain low prices for many of its entry-level vehicles.

“The current price level cannot stay the same if these cars are equipped with electric motors,” said Poetsch. “Therefore, it will inevitably lead to significant price increases in the small car segment.”

Poetsch’s comments refer to the tougher-than-expected greenhouse gas emissions targets, the European Union agreed to in December which aims to slash greenhouse gas emissions by 37.5% by 2030.

In December, Volkswagen had said, it may have to step up plans for mass production of electric vehicles to meet the EU targets.

VW plans to sink in nearly 44 billion euros on developing autonomous driving, electric cars, and new mobility services by 2023.

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