In accordance with the report, Volkswagen plans eight new reasonably priced electrical autos by 2027

In the early 1970s, when rising oil prices dampened consumer demand for gas-powered vehicles, Volkswagen turned to a battery system to power its first electric concept vehicle, the Electric Bus.

Now struggling with a huge drop in sales in Europe and China, the German automaker is once again turning to affordable electric vehicles to save the day.

Volkswagen brand boss Thomas Schäfer told German media that the company plans to launch eight new affordable electric vehicles by 2027.

“We have to produce our vehicles profitably and put them on the road at affordable prices,” he is quoted as saying.

One of the models will be the ID.2all hatchback, whose development is currently being accelerated from the previous 50-month plan to 36 months. Last year, VW unveiled the ID.2all concept car and promised to price it under 25,000 euros ($27,000) for a planned release in 2025.

VW boss Larry Blume has also indicated that an electric vehicle for less than $22,000 will come onto the market after 2025.

It's unclear which models would reach U.S. shores. Last year, VW America announced that it would launch an electric car priced under $35,000 in the United States by 2027.

Battery price is one of the main obstacles to lower production costs of electric vehicles and lower sales prices. VW is developing its own standardized battery cell in several European plants as well as a plant in Ontario, Canada.

However, in order for potential U.S. buyers to receive the $7,500 Inflation Reduction Act tax credit when purchasing an electric vehicle, the vehicle and its components, including the battery, must be at least partially manufactured domestically.

VW already has a plant in Chattanooga, Tennessee, and is planning a new plant in South Carolina. However, it is unclear whether the new uniform battery cells will be built or assembled there.