Volkswagen can manufacture a car priced at $17,175, but not within Europe.

      Let's begin with Volkswagen, as it poses a significant concern for Europe. This week, SAIC Volkswagen, a partnership with China’s state-owned SAIC Motor, initiated preorders for the ID. Era 5S saloon.

      The introductory price is set at 115,900 yuan, approximately $17,175 according to Digital Trends. Sales of the vehicle are scheduled to start in China on August 21. This represents a Volkswagen vehicle priced at just over half the cost of the cheapest electric car available in the U.S.

      Details on what the price includes

      The car features a drivetrain consisting of a 19.1kWh lithium iron phosphate battery, a 1.5-litre petrol engine, and a 130kW electric motor. It can travel 160km on electricity alone based on China’s CLTC testing.

      The equipment specifications are where it becomes concerning. Features include a 15.6-inch touchscreen, an 8.8-inch instrument display, Apple CarPlay, and wireless charging. The front seats come with heating, ventilation, and a 10-point massage function, while the rear seats also offer heating.

      Additionally, it is the first Volkswagen saloon equipped with the company's Navigate on Autopilot for city roads and highways. However, it remains a Level 2 system, requiring the driver to monitor the road.

      The mid-range trim is around $17,770, with the top Max trim priced at around $22,215. Even the priciest version still undercuts the cheapest electric vehicle in the U.S.

      BYD responds quickly

      In less than a day, BYD unveiled the 2027 Seal 06 at a lower price point, as reported by Digital Trends. The plug-in hybrid version starts at 99,900 yuan, roughly $14,700, while the fully electric model begins at 109,900 yuan, about $16,100.

      The electric variant is not a basic city car; it features BYD’s second-generation Blade battery with an 800V architecture, available in capacities of 52.9kWh or 64.3kWh, offering a CLTC range of 530km or 630km.

      Equipped with a 240kW motor, it can accelerate to 100km/h in 5.9 seconds. BYD has also incorporated a fast-charging platform utilized in significantly more expensive models.

      Higher trims include the God’s Eye B 5.0 driver-assistance system and an electromagnetic damping mechanism that continually adjusts the suspension. There is a 15.6-inch rotating display and an optional 29-inch head-up display.

      Such features are increasingly common in China. The BYD Seagull retails for around $10,300, while BAIC’s Arcfox Beta T1 starts at approximately $9,200.

      LiDAR and affordable Chinese technology

      Two noteworthy details warrant special attention for a tech-focused audience. The higher trims of the Seal 06 come with LiDAR, a technology that Western automakers continue to treat as a luxury feature.

      The voice assistant operates using DeepSeek, a Chinese product that has underpriced Western equivalents. The BYD Seagull, priced around $10,300, can also include LiDAR.

      This trend is reflected in the pricing structure; features considered top-tier in Europe are emerging in China at the lower end of the market.

      How Western prices compare

      In the United States, the cheapest electric vehicle is the 2027 Chevrolet Bolt, priced at $28,995. The 2026 Nissan Leaf has a starting price of $29,990, excluding destination charges.

      Kia recently announced its 2027 EV3 pricing at $31,385, which is the budget option in its lineup. Therefore, the Bolt is approximately $11,820 more expensive than the initial Volkswagen and nearly $13,000 more than the entry-level Seal 06. Neither source indicates a launch in the West for either model at comparable prices.

      The manufacturer behind the product

      Here's a crucial point absent from the American coverage, which was tailored for U.S. readers. The most intriguing car in this narrative bears a German emblem.

      Although it's a Volkswagen, it wasn't manufactured in Germany. SAIC Volkswagen designed it specifically for the Chinese market, and there are no reports of plans to sell it in Western markets.

      This demonstrates that the capability exists within Europe’s largest automaker, yet the factory, supply chain, and partnership do not.

      Chinese brands are rapidly expanding their presence in the UK, which is adjacent to the European market.

      Three reasons the gap seems smaller than it is

      The $17,175 figure reflects a temporary introductory price rather than the standard MSRP. The usual Pure trim is about $17,770, indicating the headline price has a time limit attached.

      The comparison is also not perfectly aligned, as the Volkswagen includes a petrol engine, whereas the American competitors operate solely on batteries, as noted by Digital Trends