Is Volkswagen bringing in cheap electric cars through the back door? From Aktienwelt360

Aktienwelt360 – Since the e-Up and its sister models are no longer in production, potential buyers have had to dig into their pockets at the VW Group. Even for Skoda Enyaq you have to spend significantly more than 40,000. In ADAC’s list of the 30 cheapest electric cars, the CUPRA Born is ranked 10th with a base price of 39,370 euros. Volkswagen (ETR:) (WKN: 766403) apparently does not offer any electric vehicles to disabled drivers. And according to official reports, not much will change this year and maybe next year – at least as far as major brands are concerned. Because cheap electric cars from the VW investment have already landed in Europe!

Official plans

When it comes to affordable electric cars from Volkswagen, the first thing that comes to mind is the ID.2all study, which will be the basis for the upcoming VW ID.2. The model uses a new modular electric body (MEB) in a limited edition and was originally planned for 2025. However, Auto Motor und Sport has reported that its orders are most likely to be accepted by the end of 2025. The first deliveries will not take place until the middle of the first of 2026.

More people will no doubt be able to afford the starting price of just 25,000 euros, but I still wouldn’t describe the model as a cheap electric car. It doesn’t help that one of the sister models, like the Skoda Epiq, which has also already been announced, is probably available for a few euros less.

The ID.1 can only be purchased if the asking price of around 20,000 euros can be reached. However, this model will not be available until 2027. It is quite possible that buyers will have to wait until 2028 before actually driving such a car.

The situation is similar with Volkswagen China, which announced at the end of 2023 that it was in the process of developing a low-cost platform specifically for the Chinese market. The first results are expected in two years at the earliest, in collaboration with local partners SAIC and FAW.

Unofficially, this is what it looks like at Volkswagen China

There is a third Chinese partner: Anhui Jianghuai Automobile Group, known as JAC Group. Volkswagen China owns 50% of the shares in Anhui Jianghuai Automobile Group Holding. And the JAC brand was recently launched in Switzerland. Priced at 17,000 Swiss francs (around 18,000 euros), the e-JS1 is currently the cheapest electric model available in Switzerland.

This means there’s another affordable electric car from Volkswagen’s investment portfolio. But how much VW is in there? In any case, JAC is not officially listed as a group brand. Among the domestic brands of Volkswagen China there is only Jetta. There was the SOL brand, which was based on SEAT models and was later called Sehol and Yiwei.

JAC Yiwei recently became known for starting to export sodium battery electric vehicles. The small brand is also behind the JAC e-JS1, which is produced in Switzerland and returns to the E10X. The model is built on the JAC electric platform, but there is definitely still a SEAT in it.

That is why Volkswagen has a majority stake in JAC

There is confusion about how much Volkswagen has to do with JAC. Importer JAC Switzerland enthuses that “The VW Group holds a 75% joint venture with JAC.” There is a joint venture in Anhui where VW China holds three quarters and JAC holds the remaining quarter. However, electric cars from the Skoda and VW brands will roll off the production line at its automated production site in the future. It will have nothing to do with JAC Group brands.

However, Volkswagen still has a 50% stake in Anhui Jianghuai Automobile Group Holding. State investors in Anhui Province hold the other half. Does this mean that the VW Group owns 50% of the JAC Group? At least that’s exactly what you can read in some media articles. JAC, a brand fully supported by VW, is what it says there, in black and white.

However, that is wrong. The holding company owns only a small quarter of the JAC Group, and therefore VW only owns about a seventh. The Anhui Jianghuai Automobile Group listed in Shanghai. According to publicly available information, about 62% of the shares are owned by independent shareholders. There are also other government shareholders.

It has been shortened

JAC and Volkswagen China are strategic partners operating a joint electric vehicle plant. The JAC e-JS1 model is loosely based on the SEAT model, but is built in a different factory and is under the full responsibility of JAC. As a major shareholder, Volkswagen China may have some influence over JAC, but the brand is not part of the group. Even the few who block are only there if there is an agreement with representatives of Anhui Province.

However, it may be useful for VW to have this “weapon” in its arsenal. What? Tesla (NASDAQ: (WKN: A1CX3T) and many other brands attack the low price segment in a big way in the next year, then the VW Group itself will be left with nothing. Through JAC he could at least increase competition and put pressure on the margins. Moreover, if successful, VW could record a good book profit. The stock is currently worth around half a billion euros.

Arguably more important for Volkswagen’s China business is that the production site in Anhui will soon produce electric models from its brands at full capacity.

Article Even before Tesla: Is Volkswagen bringing in cheap electrics through the back door? first appeared Aktienwelt360.

Ralf Anders does not own any of the shares mentioned. Aktienwelt360 recommends Tesla shares.

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