The United States auto industry has an affordability crisis. The average new vehicle price is close to $50,000, nearly three times more than the country’s cheapest car, the 2024 Mitsubishi Mirage.

Part of the pricing crisis is the increased availability of electric vehicles. Driven largely by battery prices, EVs are more expensive than internal combustion engine vehicles. The cheapest EV is the aging Nissan Leaf at just under $30,000. It will be replaced by a more expensive model later in 2025.

Chinese automakers are creating additional pressure with sophisticated technology and lower prices, at least outside the tariff-protected U.S. market. However, several automakers outside of North America are addressing this issue with new hardware and new business strategies. But will the ingenuity reach the U.S. market?

The Big Players

Stellantis is already in the market with its new Smart Car platform first appearing in 2022 with the Citroën C3 launched in India and South America. It’s a different vehicle than the C3 offered in Europe.

This fifth platform joins the STLA Small, Medium, Large and Frame platforms derived from PSA Group’s CMP architecture. Like its siblings, the Smart Car platform is multi-energy, designed to accept EV, hybrid or conventional internal combustion power.

Citroën, Fiat and Opel/Vauxhall already use this platform in the production of the $24,000 Citroen e-C3 and $26,000 Fiat Grande Panda hatchbacks. Citroën will launch a lower-powered, shorter-range e-C3 later in 2025 at just under $21,000.

The Renault Group is taking a different approach, relying on heritage and help from the Chinese. It has developed the CMF-BEV platform, sharing about 70 percent of its parts with the internal-combustion CMF-B small car platform.

The Renault Group has launched the $34,500 Renault 5 hatchback (with cheaper variants pending launch) and the sub-$30,000 Renault 4 SUV. Both cars are reboots of classic Renault nameplates. The strategy will continue next year with the $19,000 Twingo mini hatchback.

The VW Group initially tried collaborating with Renault for the Twingo, but negotiations failed. Renault’s new strategy involves collaborating with a still-unnamed Chinese engineering firm.

While details remain scarce, Renault claims this setup allows it to keep costs low and it will debut the car in about two years, far quicker than normal.

The VW Group has struggled with an affordable EV. In 2019, VW Group discussed a $21,000 EV debuting  as early as 2023 at the Frankfurt Motor Show. In 2021, it announced the SEAT brand would lead the development of a $26,000 EV to launch in 2025 using the new MEB-Lite platform.

Later in 2021, VW showed a dramatically styled ID. Life concept with the VW brand taking control of the program. Unlike Stellantis and Renault, VW starts with a fully electric platform — VW Group’s MEB.

Engineers took elements of MEB, a rear-wheel-drive platform with all-wheel-drive capability, and developed the lower-cost front-wheel-drive-only “MEB Entry” platform. It was previewed last year with the ID.2all small hatchback concept.

Production launch of the ID. 2 is pending later in 2025; The Cupra Raval small hatchback and Skoda Epiq SUV are set to follow in 2026.

In 2027, VW will launch the $21,000 VW ID.1, based on a shortened version of MEB Entry. VW just unveiled the concept ID.Every1.

Known for its value-oriented approach, Hyundai has started a strategy similar to VW Group. It’s taken its rear-wheel-drive/all-wheel-drive E-GMP platform, removed content (including the quick-charging 800V electrical architecture), and converted it to front-wheel-drive.

Hyundai’s E-GMP platform, dubbed eK, is already in China, Korea and European markets, with the Kia EV5 compact SUV and $30,000 EV3 small SUV.

The EV4 compact sedan will follow later this year, with the $26,000 EV2, a small hatchback to debut in early 2026. Hyundai will also develop small cars and SUVs on the eK platform.

U.S. Market

U.S. consumers are not overly fond of small cars and small SUVs. The Nissan Versa and Mitsubishi Mirage (the Mirage was cancelled after 2024 model) are the only sub-compacts left on sale in the U.S. A lengthy list of small SUVs have disappeared from showrooms or have been up-sized to suit American tastes. This means most of the vehicles discussed above won’t make it to America. But there are two potential highlights.

In 2024, former Stellantis CEO Carlos Tavares confirmed a $25,000 Jeep Renegade EV. Jeep CEO Antonio Filosa suggested the Renegade EV will launch by 2027. Stellantis hasn’t offered further details, but the new Smart Car platform is likely the architecture for this entry.

Recognizing the Kia EV2 isn’t suitable for U.S. buyers, Kia has confirmed the slightly larger and pricier EV3 for U.S. sales, possibly in late 2025 or early 2026. As a clean sheet EV platform with competitive technologies, the EV2 will present a strong value proposition.

An upset in Stellantis leadership and uncertainty around tariffs and EV incentives may sideline these U.S. initiatives.

Rays Of Hope

GM has promised to launch an updated version of the Bolt this fall. It will stay on its aging platform and look largely similar to last year’s model, but it gets new Ultium battery technology to improve performance and charging speed. The Bolt is anticipated to start under $30,000.

Ford has launched a skunkworks team in Long Beach, California, to develop a new affordable EV platform. The first vehicle due in 2027 will be a midsize pickup (comparable to Maverick or Ranger). Specific pricing has not been announced.

The Future

Multi-energy platforms are compromised, because fitting EV technology to a platform also intended to house non-EV hardware (e.g., exhaust system, radiator) reduces overall vehicle efficiency.

The $21,000 Citroën e-C3 has a range of about 110 miles (EPA estimated). That might be acceptable as a second or third car in Europe, but not in the U.S.

Stellantis has multiple brands and a global sales footprint. It’s positioned to generate economies to continue to improve performance and reduce costs.

Renault posted record profits in 2024. It enters 2025 on a high note following the Renault 5’s win as European Car of the Year.

Renault CEO Luca de Meo is delivering on his vision; leveraging Chinese EV expertise to bring the Twingo to market looks like a wise decision.

Renault is leveraging its brand heritage to attract buyers to its showrooms. Its heritage adds value to the Renault–Chinese cooperative, something newer Chinese brands lack. Renault is in a good position to offer attractive and affordable EVs in Europe.

VW Group’s strategy also seems sound: take a high-volume purpose-built EV platform, de-content it and create new lower-cost variants. But VW’s EV launches have been problematic. Its software issues became so crippling VW contacted Rivian to launch a software joint venture that won’t yield results until 2027. It cast doubt on VW’s ability to execute plans.

Hyundai’s strategy is nearly identical to VW Group, but its EV portfolio is receiving acclaim from the media and consumers.

In 2024, U.S. sales of Hyundai’s Ioniq 5 jumped 31 percent compared to 2023. U.S. sales of Kia’s EVs increased 74 percent. With the new eK platform already in production, Hyundai and Kia look poised to expand affordable EV portfolios in global markets. Affordability remains an issue and it’s heartening to see automakers addressing cost. Hopefully, it will occur soon in the U.S. market.