The new electric model could be approved as early as this week, according to a new report.

Volkswagen is reportedly considering building an entry-level electric car priced below the important €20,000 ($32,300) barrier in Europe.

According to Reuters, the group's supervisory board will meet on November 16, European time, to discuss the proposal.

Tentatively dubbed "MEB Entry", the new model would undercut the ID Neo, a Golf-size vehicle set to be the first production car based on the MEB platform, and due to enter production around 2020.

The sub-€20,000 EV will be produced at a rate of around 200,000 per year, and is part of the company's greater plan to achieve widespread coverage of all electric car segments.

To put things into perspective, the Polo starts at €13,025 ($21,100) in Germany, while the Golf kicks off from €19,300 ($31,200).

A source has told the newswire Volkswagen also plans to build an as-yet unannounced model, dubbed ID Aero, at the same factory as the Passat.

The Volkswagen Group's ever-growing EV plans are seen as a way to protect German jobs in the automotive sector, and keep the company relevant as the regulatory environment for diesel vehicles becomes more hostile.

Last week German courts upheld diesel car bans planned by the cities of Cologne and Bonn. The Volkswagen Group and Daimler have also agreed to retrofit improved filtering systems to existing diesel cars in Germany, at a cost of up to €3000 ($4900) per vehicle.