10:15 31-12-2025

Volkswagen pivots from small ICE cars to EVs in Europe

Volkswagen to phase out small gas cars in Europe. ID. Polo ushers in 25k–20k-euro EVs from 2026–2027 on MEB+, with ICE Polo and T-Cross briefly overlapping.

Volkswagen says the era of small gasoline-powered cars in Europe is drawing to a close. According to brand chief Thomas Schäfer, tougher EU emissions rules make it uneconomical to develop new internal-combustion models in the B-segment. Requirements to cut CO2 will tighten from 2030, and the costs of adapting such cars would drive prices up — a calculus that leaves little room for a new wave of budget ICE superminis.

The company states that the future of Volkswagen’s compact models lies with electric power. The long-term successor to the Polo will be the all-electric ID. Polo, which will keep the familiar format but lose the gasoline engine. A comeback of ultra-compact cars like the Up! or Lupo with combustion power is not planned. The direction is clear: keep the footprint, change the powertrain.

The first Polo-sized EV is expected to go on sale in 2026 at around 25,000 euros including VAT. In 2027, Volkswagen intends to launch a production version of the ID. Every1 concept with a target price of about 20,000 euros. A compact electric crossover is also on the way, previously shown as the ID. Cross concept. All of these models will use the MEB+ platform designed exclusively for electric vehicles — a timeline that reads as an effort to anchor the lower end of the lineup with mainstream pricing.

At the same time, gasoline versions of the Polo and T-Cross will remain on the market for a while alongside electric variants. Volkswagen emphasizes that the transition will be gradual. The growing share of EVs in the EU supports this strategy, positioning city-focused electric cars as the default choice in the smallest segments. It’s a pragmatic two-track approach until the market decisively tips.