Volkswagen takes on BYD with the €33,000 Elroq electric SUV from its Skoda budget brand

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The €33,000 Elroq electric SUV is available in three different battery sizes that all offer fast charging.

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A handout photograph of the Skoda Elroq First Edition. Photo: Skoda

Bloomberg

Published: 10:31am, 2 Oct 2024

Volkswagen’s Skoda unwrapped a €33,000 (US$36,615) electric SUV as Europe’s biggest carmaker tries to weather a slump in demand and intensifying competition from China.

The Elroq is available in three different battery sizes that all offer fast charging. The model costs roughly the same as its combustion-engine counterpart – a critical threshold for EV makers looking to boost sales.

The SUV “will be a game changer,” for the brand’s EV push due to its competitive price, Chief Executive Officer Klaus Zellmer said Tuesday in an interview in Prague.

Drivers in Europe have balked at the high cost of EVs from Volkswagen, Stellantis and Renault, after countries including Germany scrapped subsidies. The move has left an opening for Chinese brands, led by BYD, to grab market share with their less expensive models.

Skoda has emerged as a bright spot at Volkswagen. The brand, which produces in low-cost countries including the Czech Republic and China, saw its European sales rise about 9 per cent this year through August. That is in stark contrast to the demand issues at the namesake VW brand, which is weighing job cuts and unprecedented factory closures in Germany to become more competitive.

The Elroq could help buoy sales in Europe. It comes with a rear-view camera, a 13-inch infotainment screen and a digital voice assistant powered by ChatGPT. The model is priced well below VW’s ID. 4 electric SUV, which starts at around €48,000, and also undercuts BYD’s Atto 3 that costs about €38,000.