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 VOWG_p.DE line-up to feature software from its joint venture with U.S.-based EV maker Rivian RIVN.O, 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.

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(Reporting by Andreas Kranz in Duesseldorf, Writing by Victoria Waldersee, Editing by Miranda Murray)

((Victoria.Waldersee@thomsonreuters.com;))