Automakers are cautiously optimistic as the European Commission considers reversing the 2035 ban on new combustion-engine vehicles. Yet, stringent emissions targets remain: companies must still cut fleet emissions by 90% compared to 2021 levels. Even before 2035, manufacturers face tighter CO₂ rules, with the latest regulations already in effect this year. From 2030 onward, the standards will become even more demanding.
Against this backdrop, Volkswagen is signaling the end for small gas-powered cars in Europe. The CEO of Europe’s top-selling brand told Auto Motor und Sport that models like the Polo will shift entirely to electric power. Thomas Schäfer is blunt: “The future in this segment is electric.” Designing a new internal combustion car in the B-segment to meet emissions rules would be prohibitively costly, and those expenses would ultimately make the car too expensive for customers.
As a result, it’s only a matter of time before the supermini segment loses its combustion engines entirely, with the ID. Polo poised as its indirect successor. Volkswagen has no plans to return to the A-segment with a gas-powered model in the style of the tiny up! or Lupo. The decision makes sense given the upcoming wave of affordable EVs. The electric Polo launching next year will start at €25,000 in its base trim.
By 2027, a production version of the ID. Every1 concept will bring the entry price down to €20,000. Both prices include VAT, though they don’t factor in incentives offered by some EU countries. VW is also developing a Polo-sized electric crossover, previewed earlier this year at the IAA Mobility Show through the ID. Cross concept. All three models will be built on the MEB+ platform, designed exclusively for electric vehicles.
While Volkswagen won’t be developing new small cars with combustion engines, the current lineup of ICE models will remain on sale for now. Wolfsburg has not announced an end date for the Polo or its crossover counterpart, the T-Cross. Gas-powered and electric vehicles will coexist for an unspecified period before the traditional models are eventually phased out.
Recent sales figures highlight Volkswagen dominance in Europe. The brand is the only automaker to surpass one million units sold in the first ten months of 2025, according to the European Automobile Manufacturers’ Association, with 1,017,781 vehicles delivered. Including the UK, Iceland, Liechtenstein, Norway, and Switzerland, total sales reach 1,208,829 units.
Despite claims that EV demand is slowing, the numbers suggest otherwise—at least in Europe. Through October, electric vehicles made up 16.4% of the EU market, up from 13.2% during the same period last year. Including the non-EU countries mentioned earlier, EVs held an 18.3% share, compared with 14.8% last year. Volkswagen’s upcoming lineup of affordable electric models is expected to play a key role in boosting EV adoption in the years ahead.
Volkswagen ID.Every1 concept
