The Volkswagen Group has invested heavily in upgrading its software technology and has recently begun offering over-the-air updates for the ID 3 and ID 4. That technology also allows Volkswagen to offer certain car features as downloadable options, and such systems are likely to feature on the ID 2. Selling it with a limited number of options will keep the sales price down, with buyers able to upgrade their cars later.

That connectivity tech will also be vital for the likely use of the MEB Entry models on ride-sharing ‘mobility’ fleets, allowing users to hire them via a smartphone and enable the particular features they want.

The Volkswagen Group is in the process of introducing a unified battery cell design for the bulk of its future EV models, to help reduce production costs through greater economies of scale. But while the cells will be unified, the overall design will enable the use of differing battery cell materials.

The MEB Entry models will use lithium-iron-phosphate tech, which the Volkswagen Group estimates will be around 50% cheaper to make than current battery cells. Iron phosphate technology has limitations in terms of range and charging times, but Volkswagen Group bosses believe that is less of an issue given the typically fewer miles driven by entry-level city cars.

The MEB Entry platform is likely to allow for a number of battery sizes, ranging from 30kWh to 45kWh in size. That would mean ranges in the region of 120 to 180 miles. It is understood the £17,000 target price is for the base-spec models with the smallest battery, with higher-specification models likely to cost from around £21,500.