The sub-$30,000 electric car has been the dream of Western auto manufacturers for years. On unveiling the Model 3, Tesla promised that this best-selling EV would be available for under that figure, and yet, aside from some rare extreme discounts, that hasn’t been so. In the meantime, American electric car startups have started with $75,000+ premium cars — notably, Rivian and Lucid — and the Big Three are proud of themselves for making EV trucks and SUVs around the $50,000 mark, even though customers aren’t buying them.

The backdrop for this is that the budget EV is only difficult in the West and — powered by a large industry, colossal state subsidies, and few labor laws — Communist China is producing a flood of excellent EVs, all at budget prices. Despite US tariffs, meaning these cars are not available for American customers, Communist Chinese brands now own a 76% share of the global electric car market. If Americans could buy them, companies like Tesla would be doomed.

Scared to go the way of the German electronics industry — which was trampled by cheaper, superior Asian goods — Volkswagen is aggressively pushing to release new budget EVs. If all goes according to plan, they will release a $27,000 small hatchback later this year — or early next — based on the 2023 “ID.2.All” concept; and they just previewed a new, even smaller hatchback, in the concept “ID.EVERY1.”

Releasing in 2027, the ID.1 will be smaller than the ID.2 or Polo but bigger than the small Up! hatchback and gets down to its impressive reported $21,000 starting price by simplifying. Rather than release it with more range and power than any city driver will realistically need, the ID.1 will top out at about 150 miles of range at a charge, meaning it can use smaller, lighter, cheaper batteries, and its small single-motor electric motor system only generates 94 horsepower. On the inside, it does come with a large screen — which will doubtlessly shrink down for the production version — but it also has a refreshing number of buttons on the wheel and dashboard for everyday functions. Customers have long been frustrated with all commands being on a touch-screen, and companies — aside from Tesla — are finally listening.

There are still a lot of questions about this car. Will it look like this handsome concept? Will it be released in the intended timeline, at the intended price, and not feel immensely cheap? Will it even go on sale outside of Europe? These are to come, but Volkswagen has built this on a new front-wheel drive electric platform, which seems like a dramatic improvement on their current version, which had a rushed development in response to the “Diesel Gate” scandal.