According to an overseas report, the company is looking to slash the cost of mainstream electric vehicles over the next three years with use of its MEB-Lite modular platform.
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Volkswagen plans to deliver a €20,000 (AU$32,000) electric vehicle by 2023, according to a new report from Reuters.

The in-house project – reportedly codenamed 'Small BEV' (Battery Electric Vehicle) – is tasked with building a city car more affordable than the current ID.3, which was officially launched for Europe in September and is priced from €35,575 (AU$58,000) in Germany.

The new model will be based on the German manufacturer's MEB-Lite modular platform, which is designed to incorporate battery packs up to 45kWh.

It is likely – but so-far unconfirmed – company subsidiaries Skoda and SEAT will similarly utilise the platform for low cost electric vehicle production.

CarAdvice reported earlier this year that Volkswagen could potentially offload its prestige marques Bugatti, Bentley, and Ducati, to focus more attention on the development of its mainstream consumer 'ID' range of electric vehicles.

The ID.3 is slated for launch in Australia during 2022.

A spokesperson for Volkswagen was approached for comment on the report. This story will be updated when more information becomes available.