Volkswagen has confirmed it will no longer produce new small car models equipped with petrol or diesel engines. This decision marks a significant shift in the company's strategy for its compact vehicle segment, aligning with broader industry trends towards electrification.

Instead, Volkswagen is focusing on an all-electric lineup for its small cars, with several new models planned for release in the coming years. Among these, the Volkswagen ID. Polo and ID. Cross are slated for market introduction in 2026, while the ID. Every1 is set to follow in 2027. All upcoming compact electric vehicles will be based on Volkswagen's advanced MEB+ platform. This modular architecture, an evolution of the company's original modular electrification toolkit (MEB), was initially introduced in 2023 and is designed to enhance performance and cost-efficiency.

New Platform to Boost Range and Affordability

The MEB+ platform offers a range of improvements aimed at making electric vehicles more appealing to consumers. It supports an extended driving range of up to 700 kilometers, faster charging speeds between 175 and 200 kW, and incorporates cost-effective battery technology using lithium iron phosphate (LFP) cells. These advancements are expected to result in more competitively priced vehicles, with some entry-level models anticipated to cost less than 25,000 euros.

According to Volkswagen, the new generation of electric small cars will serve as attractive alternatives to traditional combustion engine vehicles, delivering both extended range and an enhanced driving experience. The company also points to increasingly stringent European Union emissions regulations as a key factor in its decision, noting that developing new petrol or diesel small cars would no longer be economically viable due to the high costs of compliance.

Continued Production of Combustion Engines in Larger Segments

While Volkswagen is moving away from internal combustion engines in the small car segment, it will continue to produce petrol, diesel, and full hybrid vehicles in its larger model ranges. The company emphasizes that the transition to electrification is ongoing and that certain segments will retain combustion engine options for the foreseeable future. Volkswagen does not currently see hydrogen fuel cell technology as a practical alternative for mass-market vehicles, citing limitations in the availability of green hydrogen, high costs, and efficiency challenges.

Investment in Battery Production

As part of its commitment to electrification, Volkswagen has invested in the development of proprietary battery cells. The company recently opened a new battery cell production facility in Salzgitter, operated by its subsidiary PowerCO SE. This facility is expected to reduce Volkswagen's reliance on external suppliers and improve both technological and financial independence. From 2026, battery cells produced in Salzgitter will be integrated into the 'Electric Urban Car Family,' which includes the Volkswagen, Skoda, and Cupra brands. The first models to receive these batteries will be the ID. Polo and Cupra Raval, which will be assembled in Spain.

Strategic Shift Reflects Industry-wide Changes

The automotive industry continues to undergo a rapid transformation as manufacturers adapt to evolving regulatory demands and shifting consumer preferences. Volkswagen's decision to discontinue new petrol and diesel small cars underscores the growing emphasis on electric mobility within the sector. With competitive pricing and technological advancements, the company aims to make electric vehicles accessible to a broader audience, particularly in the compact segment where affordability and efficiency are critical factors.

Volkswagen's ongoing investments in battery technology and flexible vehicle platforms are expected to further strengthen its position in the expanding electric vehicle market, supporting both its commercial goals and regulatory compliance across key global markets.