Volkswagen unveils compact electric SUV ahead of Munich car show

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MUNICH (Reuters) – Volkswagen unveiled a concept for a new small electric SUV on Sunday as part of the automaker’s push to offer affordable battery-powered vehicles amid greater competition on cost and innovation, U.S. tariffs and shifting consumer demand.

The ID.CROSS is part of a product offering that has seen the Volkswagen group, Europe’s largest carmaker, introduce around 60 models in 2024 and 2025, Chief Executive Blume said at a media preview ahead of the Munich car show that begins on Tuesday.

The compact electric SUV, which will have its world premiere in the summer of 2026, is expected to be priced between 28,000 euros and 30,000 euros ($32,780 and $35,121), targeting less affluent clients keen on buying EVs.

“We’ve always faced major challenges,” Blume said, citing strong competition, declining demand in Europe, a price war in China and trade tensions, most notably U.S. import tariffs that have dealt a severe blow to the carmaker’s Audi and Porsche brands.

“But we didn’t hold back,” Blume said with regard to the group’s offering, which also includes the ID.Polo hatchback EV – with a starting price of 25,000 euros – as well as the CUPRA Raval and Skoda’s Epiq SUV.

European automakers are up against stiff competition from China in the quest to bring affordable EVs to the market.

Squeezed by falling profits in key market China and weak auto demand in Europe, Volkswagen has also launched a major cost-cutting programme that will see more than 35,000 jobs go, along with painful capacity cuts at its German plants.

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(Reporting by Christoph Steitz and Christina Amann; Editing by Friederike Heine and Bernadette Baum)