Entry-level Volkswagen ID models happening

Volkswagen has announced it remains committed to producing smaller, cheaper versions of its ID electric cars that will be priced from around €20,000 ($A30,000).

According to Autocar, Volkswagen CEO Ralf Brandstaetter not only has confirmed a small electric 'people's car' is coming but that it will be built on a new 'MEB-Lite' version of the existing platform underpinning the Volkswagen ID.3 and ID.4.

It will also come with a smaller battery capacity of up to 45kWh.

Mirroring the Volkswagen Polo light hatch and T-Cross small SUV, the new cheap electric models are set to be called the ID.1 and ID.2.

The Volkswagen ID.1 city hatch is set for a €20,000 ($A32,000) starting price, while the ID.2 is tipped to start from €25,000 ($A40,000).

There's no official date on when either will arrive, but it's believed both cars' arrival will be post-2023.

When they do arrive, they'll replace the current e-Up in Volkswagen Europe's electric line-up. There's no word on the range for either affordable ID model but expect them to cover more than 300km between recharges – a decent bump over the e-Up that's powered by a smaller 36.8kWh battery.

Brandstaetter said the MEB-Lite platform will spin off entry-level models from SEAT, Skoda and potentially Audi, as well as affordable small electric cars from its various Chinese joint-venture partners.