VW has confirmed it will introduce a new entry-level electric car with a target price of less than £17,000.

The car - likely called ID 1 - will be a successor to the e-Up and will be officially unveiled at the beginning of March. The world premiere of the production model is scheduled for 2027.

Thomas Schäfer, CEO of the Volkswagen Passenger Cars brand, said: “An affordable, high-quality, profitable electric Volkswagen from Europe for Europe. This is the Champions League of automobile manufacturing.”

It will join the VW ID 2 as part of a new range of compact electric models from the VW Group.

Schäfer emphasised that VW's Wolfsburg plant would remain the heart of the Volkswagen brand in the electric age. Production of the exisiting Golf is moving to Mexico to free up space for advanced technologies.

The electric Golf successor, based on VW's SSP platform, as well as the high-volume electric T-Roc will take place at Wolfsburg.