Volkswagen Group hasn't given up on its quest to deliver an affordable electric vehicle.

Thomas Schäfer, who heads the automaker's volume Volkswagen brand, said during a press conference on Thursday that an entry-level EV to be called the ID.1 will be launched in 2027 with a price tag starting below 20,000 euros (approximately $21,800, based on current exchange rates).

The vehicle will sit in the minicar segment and replace the current e-Up electric hatchback. VW has four possible designs for the car on the drawing board, and Schäfer said the winning design will be picked in the next few weeks.

Automotive News (subscription required) reported that VW could partner with fellow VW Group brand Skoda to help share development costs for the ID.1. The two are already working on affordable EVs for the Indian market.

Renault Twingo Legend concept

Renault Twingo Legend concept

Another option would be partnering with Renault, which plans to launch an electric minicar to serve as the next Twingo hatchback. Renault teased a possible design for its future Twingo with the reveal earlier this year of the Twingo Legend, a concept with retro styling mimicking the original Twingo of the 1990s.

According to reports earlier this year, VW is interested in joint development of a platform for affordable EVs, and Renault is one of the possible partners. Renault CEO Luca de Meo is also a former senior VW Group executive.

Prior to launching the ID.1, VW will launch an ID.2 subcompact hatch. Schäfer said to expect the ID.2 around 2026.

The ID.2, which may use the Polo name in production, was previewed last year with the ID.2all concept. The ID.2 is expected to be priced from below 25,000 euros (approximately $27,200). That's roughly the same point at which Tesla wants to price its own affordable EV due around 2025.