A COMPACT all-electric hatchback with a starting price below £22,000 has been revealed as a concept by Volkswagen.

The ID.2all is due for release in 2025 and VW says it offers the space of a Golf for the price of a Polo.

It is the first front-wheel-drive vehicle in VW's ID. family of EVs and has a boot capacity ranging from 490 to 1,330 litres.

VW says the ID.2all has a range of just over 280 miles on a full charge and the car is to be built on its new MEB Entry platform.

It is one of ten new electric models that Volkswagen will launch by 2026 and will join the current ID. line up of ID.3, ID.4 and ID.5 models.

Thomas Schafer, chief executive of Volkswagen Passenger Cars, said: "The ID. 2all shows where we want to take the brand: close to the customer, top technologies and a fantastic design. We are implementing the transformation at pace to bring electric mobility to the masses."

Volkswagen will present the production version of the ID. 2all for the European market in 2025 with the goal of a starting price of less than 25,000 euros.

The company says it is also working on an electric car at a price of less than 20,000 euros - around £17,500.

The ID.2all concept is powered by a motor which develops 226ps giving it a 0 to 62mph acceleration time of less than seven seconds and a top speed of 100mph. Recharging to 80 per cent capacity will take around 20 minutes.

It measures 4,050mm in length and 1,812 mm in width which is similar to the current VW Polo.