DUESSELDORF, March 5 (Reuters) - Volkswagen will focus

the sales strategy for its 20,000-euro ($21,580.00) electric

car coming out in 2027 on Europe, its brand chief said on

Wednesday, adding the carmaker needed until then to bring down

battery costs to sell it at that price.

The car will be the first in Volkswagen's

line-up to feature software from its joint venture with

U.S.-based EV maker Rivian, which requires fewer

electronic control units and significantly less wiring, reducing

vehicle weight and simplifying manufacturing.

The Volkswagen brand is planning eight new affordable

electric models by 2027, including a 25,000-euro model called

the ID.2 expected to hit the market this year.

While only a handful of models, such as the Dacia Spring or

Leapmotor's T03, exist in Europe for under 20,000 euros, 11 new

models priced under 25,000 euros will go on sale on the

continent this year including the Renault R5, the Fiat Grand

Panda, and the Hyundai Inster.

Negotiations between Renault and Volkswagen to combine

forces on producing an affordable electric version of Renault's

Twingo collapsed last year, leaving Renault to launch the

vehicle on its own in 2026.

The Volkswagen brand is in the midst of cutting capacity and

costs to free up its finances for investment in building cheaper

EV models as it battles to protect its market share from Chinese

rivals.

($1 = 0.9268 euros)