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New Rival to BYD: Discover Volkswagen’s Plan to Compete in the Electric Market and Challenge Dolphin Mini with Affordable Model

Written by Alisson Ficher
Published on 31/05/2025 at 00:37
Updated on 31/05/2025 at 09:26
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Volkswagen Bets on Accelerated Innovation, Artificial Intelligence and Reused Platform to Launch the ID.1, Seeking to Reduce China’s Advantage in the European Market for Accessible Compact Electrics, a Segment in Rapid Technological Transformation and Increasing Competitiveness.

Volkswagen is intensifying its efforts to launch the ID.1, its new entry-level electric car, with an expected arrival in the European market in 2027.

The model aims to compete directly with vehicles like the BYD Dolphin Mini, offering an accessible and modern alternative in the electric compact segment.

Agile Development and Use of Artificial Intelligence

To accelerate the development process, Volkswagen is adopting methods inspired by Chinese startups, such as BYD.

The development cycle, traditionally 50 months, is being reduced to 36 months.

This will be possible through the reuse of the MEB platform, already employed in the ID.2, and the implementation of more agile processes, with intensive use of artificial intelligence and virtual simulations.

“We are transforming our internal structure to adopt more agile processes, inspired by Chinese startups,” said Thomas Kamla, chief engineer of the project.

Technical Features of the ID.1

The ID.1 will be a compact hatchback with front-wheel drive, measuring 3.88 meters in length.

Despite being positioned in segment A, its size brings it closer to segment B.

The vehicle will have interior space for four occupants and a trunk of 305 liters.

The powertrain will include a 95 hp (70 kW) electric motor, paired with a low-capacity battery with LFP (lithium iron phosphate) chemistry.

This technology prioritizes durability and affordability.

The range will exceed 250 km on the WLTP cycle, with a top speed limited to 130 km/h.

Volkswagen Accelerates the Launch of the ID.1 to Compete with BYD Dolphin Mini, Betting on Agility, AI, and Affordable Prices in the Electric Market.
Volkswagen Accelerates the Launch of the ID.1 to Compete with BYD Dolphin Mini, Betting on Agility, AI, and Affordable Prices in the Electric Market.

Digitization in the Development Process

One of the main differentiators of the ID.1 will be the adoption of digital tools and artificial intelligence from the early stages of the project.

Virtual simulations will replace part of the physical tests, allowing for quicker decisions.

Still, the brand will use prototypes derived from the ID.2 to validate components.

The centralized electronic architecture from Rivian will debut in this model, reflecting Volkswagen’s effort to modernize its technological base to keep up with competitors that were born in a natively digital environment.

Volkswagen Accelerates the Launch of the ID.1 to Compete with BYD Dolphin Mini, Betting on Agility, AI, and Affordable Prices in the Electric Market.
Volkswagen Accelerates the Launch of the ID.1 to Compete with BYD Dolphin Mini, Betting on Agility, AI, and Affordable Prices in the Electric Market.

Competition with Chinese Vehicles

The European automotive industry faces increasing pressure from China, which is rapidly advancing with low-cost electric models.

One of the main rivals of the future ID.1 is the BYD Dolphin Mini (Seagull in China), which has become a sales success with its competitive price and a strong presence in the Asian market.

The model will also be produced in Europe, at BYD’s new factory in Hungary.

“Volkswagen needs to think like a startup to keep up with this new pace of innovation,” highlighted Kamla in an interview with Automobilwoche magazine.

Name Still Undefined

Although the commercial name of the model is not yet defined, the European press speculates that the ID.1 may adopt names previously used by Volkswagen, such as Lupo, Fox or up!.

This choice could facilitate the model’s identification with the public, especially in Europe, where these names have a market history.

Volkswagen Accelerates the Launch of the ID.1 to Compete with BYD Dolphin Mini, Betting on Agility, AI, and Affordable Prices in the Electric Market.
Volkswagen Accelerates the Launch of the ID.1 to Compete with BYD Dolphin Mini, Betting on Agility, AI, and Affordable Prices in the Electric Market.

Strategy to Recover Market Share

The launch of the Volkswagen ID.1 represents a strategic step for the brand to regain space in the entry segment of electric vehicles.

By combining competitive pricing, reused platform, artificial intelligence, and accelerated production, the company seeks to reduce the technological and response-time gap that separates it from Chinese manufacturers.

Do you believe Volkswagen’s strategy will be sufficient to compete with Chinese electric models in the European market? Share your opinion in the comments!

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Julio Cezar Marangão
Julio Cezar Marangão
03/06/2025 07:59

Gosto da marka wolquisvgen,
Tenho confiança no que faz,gostaria
De ser um dos primeiros a ter esse novo carro elétrico

Rodrigo
Rodrigo
01/06/2025 18:21

O problema do kwid elétrico é autonomia muita pouca, esse daí tem que superar a autonomia do Byd mini se quiser superar vendas ou baixar o preço

Alisson Ficher

Jornalista formado desde 2017 e atuante na área desde 2015, com seis anos de experiência em revista impressa, passagens por canais de TV aberta e mais de 12 mil publicações online. Especialista em política, empregos, economia, cursos, entre outros temas e também editor do portal CPG. Registro profissional: 0087134/SP. Se você tiver alguma dúvida, quiser reportar um erro ou sugerir uma pauta sobre os temas tratados no site, entre em contato pelo e-mail: alisson.hficher@outlook.com. Não aceitamos currículos!

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