(Bloomberg) -- Volkswagen AG’s Skoda unwrapped a €33,000 ($36,615) electric SUV as Europe’s biggest automaker 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 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 Co., 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% this year through August. That’s 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.
The longest-range Elroq can drive more than 560 kilometers (348 miles) on a single charge — that’s more than Tesla Inc.’s Model Y. Customers can order the model from Wednesday, with deliveries due to start in the first quarter of 2025.
Zellmer said he expects the new car to outsell the Enyaq, Skoda’s larger and pricier battery-powered sport utility vehicle that hit showrooms in 2021 and remains one of Europe’s most popular EVs.
Outside of its home region, the CEO rates India the “most promising” growth market for Skoda, saying the country can serve as a production and component hub for further expansion in Asia and the Middle East. The brand also is setting up an assembly plant with a local partner in Vietnam.
--With assistance from Krystof Chamonikolas.
(Updates with executive comments starting in eighth paragraph.)
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