Volkswagen ID.Polo and Skoda Peaq scoop German Car of the Year awards

The Volkswagen ID.Polo has been named best budget car at the 2027 German Car of the Year awards, putting the new electric hatchback in contention for the overall Car of the Year title.

The ID.Polo beat the Renault Twingo and Renault Clio to win the category for new cars costing less than €25,000. It will now go up against the winners of the other four main classes in a two-day test to decide the overall German Car of the Year, which will be announced in early November.

Skoda also picked up an award, with its new seven-seat Peaq named Family Car of the Year. Outgoing Skoda CEO Klaus Zellmer was also recognised, receiving the Automotive Person of the Year award for 2027.

Volkswagen ID.Polo wins best budget car

The German Car of the Year awards are split into five main classes based on vehicle price, with the ID.Polo winning the budget category for new cars costing less than €25,000.

With the class in the bag, the ID.Polo now goes forward to take on the other four class winners, which will be tested back-to-back over a two-day period to decide the overall Car of the Year winner. This will be announced in early November.

Talking about the ID.Polo's success, VW's car development boss Kai Grunitz said: "The success at the German Car of the Year awards proves that the ID.Polo's overall package is highly convincing: clear design, plenty of space, intuitive operation, high safety standards and technologies usually found in higher segments.

"This is a fantastic recognition for the entire team and a strong signal for our goal to make electric mobility accessible and desirable for significantly more people."

Successes for Skoda with new Peaq

Skoda also picked up an award with the new Peaq SUV. New for this year’s awards, five attribute awards were given out, covering value, interior and exterior design, powertrain and family friendliness, with Skoda topping the class as Family Car of the Year.

What’s more, Skoda’s outgoing CEO, Klaus Zellmer was named Automotive Person of the Year for 2027, in recognition of his achievements in the industry.

How the results were decided

As Europe’s largest car market, Germany’s opinion counts when it comes to which cars are the most competitive. For the German Car of the Year awards 2027, any all-new model launched in Germany between August 2025 and August 2026 could be selected.

From this list, a 47-strong line-up of experienced automotive journalists from Germany and abroad votes online for its class winners, with the five top class-winning cars then being tested by the jurors over two days to decide the overall victor.

This is the ninth year the GCOTY has been awarded, with VW Group brands celebrating overall success in the past. The Porsche Taycan won in 2020, the VW ID Buzz took victory in 2023 followed by the VW ID.7 a year later. Last year’s event was won by the Skoda Elroq.