Volkswagen Abandons New Small Fuel Cars: High Cost, No Future Significance

December 19, 2025 – Volkswagen has firmly set its course for the next generation of entry – level vehicles, making a decisive move towards an all – electric future. The German automaker has announced that it will no longer introduce new small – sized internal combustion engine cars and will focus solely on pure electric models in the future.

Thomas Schäfer, the head of the Volkswagen brand, stated in an interview with “Auto Motor und Sport” that continuing to develop fuel – powered vehicles in the Polo segment and below makes no sense in the face of increasingly stringent emission regulations. He emphasized that new internal combustion engine models in this market segment are simply “too expensive.”

Volkswagen is gearing up to launch a brand – new family of mass – market electric vehicles in the spring of 2026. The ID.Polo will lead the charge in this new product line, with other models to follow in a phased expansion.

According to reports, with the introduction of the Polo – sized electric vehicle next year, Volkswagen’s future entry – level electric cars will not have corresponding fuel – powered counterparts. As for the sales cycles of the existing fuel – powered Polo and T – Cross, Schäfer did not provide a specific timetable. However, industry insiders generally believe that they may continue to be sold until around 2030.

When it comes to hydrogen power, Schäfer takes a tough stance, believing that it is not suitable for the mainstream market. He pointed out that there is simply not enough green hydrogen available, fuel cells are too costly, and the technology is not efficient enough.

In Schäfer’s view, the only realistic way to achieve rapid decarbonization of mass – market vehicles is to fully embrace electric drive. The ID.Polo, which is the first pure electric vehicle to carry the name of a classic model, is seen as the starting point of Volkswagen’s new – generation product strategy.

According to the plan, the Polo electric version will go on sale in Europe in the spring of next year, with a starting price of around 25,000 euros. Subsequently, the slightly higher – positioned ID.Cross will be launched in mid – 2026, with a price expected to be lower than the ID.4, which starts at around 35,000 euros. Both models will be built on the all – new MEB+ platform.

In addition, Volkswagen also plans to introduce the smaller and more affordable ID.1 in 2027 to replace the e – UP!, further enhancing its entry – level electric vehicle lineup.

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