FRANKFURT -- Volkswagen is accelerating plans to launch a full-electric small car that will be positioned below its ID3 compact hatchback.
The entry-level EV will replace the Up minicar and potentially the Polo, company sources told Automotive News Europe.
The car will be based on VW's MEB platform like the ID3. It will start at around 20,000 euros ($23,840). It could be called the ID2 with a smaller version called the ID1, German press reports said.
VW has set up a Small BEV (Battery Electric Vehicle) project team to work on the Polo-sized model, which would go on sale in 2023 at the earliest.
To save costs the EV could use more affordable, less energy dense lithium iron phosphate cells.
"The electric version of the Golf had just a 36 kilowatt-hour battery, and since the small electric car is primarily for urban driving with more limited ranges, I could imagine a similar size battery would be sufficient," a VW source said.
VW has not said what the vehicle might look like, when it might be launched or where it might be built.
The new EV will help VW to lower its CO2 fleet emissions in Europe, helping it to meet stricter reduction goals set by the EU. It will also open e-mobility to larger sections of car buyers, VW executives said.
