Volkswagen is capable of producing a car for $17,175, but not in Europe.

      Let's begin with Volkswagen, as it may prompt concern in Europe. SAIC Volkswagen, the collaboration with China’s state-run SAIC Motor, has started taking preorders for the ID. Era 5S saloon this week.

      The starting price is 115,900 yuan, which Digital Trends estimates at around $17,175. This vehicle is set to be available in China starting August 21.

      This Volkswagen model carries a badge on a car priced at just over half the amount of the cheapest electric vehicle in the U.S.

      What the price provides

      It features a drivetrain that includes a 19.1kWh lithium iron phosphate battery, a 1.5-liter gasoline engine, and a 130kW electric motor. It can travel 160 km solely on electric power according to China’s CLTC testing.

      The equipment list is where things become concerning. Buyers receive a 15.6-inch touchscreen, an 8.8-inch instrument display, Apple CarPlay, and wireless charging capabilities. The front seats offer heating, ventilation, and a 10-point massage feature, while the rear seats also provide heating.

      This model is also the first Volkswagen saloon equipped with the company’s Navigate on Autopilot feature for city and highway driving. It remains a Level 2 system, meaning the driver must stay attentive to the road.

      The mid-tier version is priced around $17,770, and the top Max version is approximately $22,215. Even the most expensive variant undercuts the price of the cheapest electric car in the U.S.

      BYD responded swiftly

      Then, BYD unveiled the 2027 Seal 06, and it has gone even lower, according to Digital Trends. The plug-in hybrid starts at 99,900 yuan, roughly $14,700, while the all-electric version is priced at 109,900 yuan, about $16,100.

      The electric model isn’t merely a basic city car. It features BYD’s second-generation Blade battery supported by an 800V architecture, available in capacities of 52.9kWh or 64.3kWh, allowing for a CLTC range of 530km or 630km.

      A 240kW motor can accelerate it to 100km/h in just 5.9 seconds. Additionally, BYD has equipped it with the fast-charging platform typically found in its more expensive models.

      Higher trims include the God’s Eye B 5.0 driver-assistance suite and an electromagnetic damping system that continuously adjusts the suspension. It also features a 15.6-inch rotating display and an optional 29-inch head-up display.

      These features are increasingly typical in China. For instance, BYD's Seagull is priced around $10,300, while BAIC’s Arcfox Beta T1 starts at approximately $9,200.

      LiDAR and a Chinese model at affordable prices

      Two specific details are noteworthy for a tech audience. The God’s Eye suite equipped in the higher trims of the Seal 06 includes LiDAR, which Western automakers still regard as premium equipment.

      The voice assistant operates on DeepSeek, a Chinese model that offers a competitive price compared to its Western counterparts. BYD's Seagull, priced at about $10,300, is also available with LiDAR.

      This pattern directly reflects the pricing strategy. Features that Europe markets as premium are appearing in China at more accessible price points.

      What comparable options cost in the West

      In the U.S., the most affordable electric vehicle is the 2027 Chevrolet Bolt, costing $28,995. The 2026 Nissan Leaf begins at $29,990 before adding destination charges.

      Kia has recently priced its 2027 EV3 at $31,385, including destination fees, marking it as the budget-friendly option in its lineup.

      Consequently, the Bolt is approximately $11,820 more expensive than the introductory Volkswagen and nearly $13,000 higher than the entry-level Seal 06. Neither source indicates plans for these vehicles to launch in the West at such competitive prices.

      The manufacturer is European

      Here’s the aspect that American reports overlooked: the most intriguing car in this comparison boasts a German badge.

      However, Volkswagen did not manufacture it in Germany. It was developed by SAIC Volkswagen specifically for the Chinese market, and neither source mentions a plan to introduce it to the West.

      This illustrates that the potential exists within Europe’s largest automaker, but the factory, supply chain, and partnership are not aligned with that capability.

      Chinese brands are making significant gains in the UK, which is the neighboring market.

      Three reasons the figure appears smaller than it is

      It’s important to note that $17,175 is a promotional introductory price, not the standard price. The regular Pure trim is around $17,770, implying that the highlighted figure has a time limitation.

      The comparison is also not straightforward. The Volkswagen utilizes a gasoline engine, while the