New VW e-Up! could cost less than £20,000 in the UK

Volkswagen says it wants to make “electric mobility affordable for everyone” with the new e-Up! city car.

The German firm has confirmed costs for its home market, and while UK pricing is yet to be finalised, a Volkswagen UK spokesman told the PA news agency it “will be around £23k” before the grant.

As an all-electric vehicle, the e-Up! would be eligible for a discount of £3,500 under the government’s plug-in car grant scheme, taking the starting price below £20,000.

VW says it has been able to offer the new model at a lower price because of economies of scale – as the firm increases the number of electric vehicles it offers and more people are buying them, it can in turn build the vehicles at a lower cost per unit.

Although the refreshed electric version of VW’s city car has not yet been revealed, details about the technology underpinning it have been confirmed. The e-Up! battery capacity has increased from 18.7kWh to 32.2kWh, resulting in a claimed range of 162 miles. Charging to 80 per cent should take about an hour with a 40kW fast charger.

The electric motor has an 82bhp output that contributes to an 11.7-second 0-60mph time.

UK specification is yet to be confirmed, but Volkswagen says German vehicles will have air conditioning, Bluetooth connectivity, DAB radio and a lane departure warning system as standard.

The new VW e-Up! will make its public debut at the Frankfurt motor show next month.