HAMBURG — Volkswagen‘s ID 2all demonstrates how the brand has rethought its vision for an affordable small battery-electric car

The concept, which was unveiled here on Wednesday, drops the retro look of the ID Life unveiled in 2021 for a more traditional design in keeping with the rest of VW brand’s passenger models.

VW aims to bring the starting price of the ID2’s production version below 25,000 euros ($26,800), VW brand CEO Thomas Schaefer said.

He said economies of scale and building the car in Spain, where wages are relatively low, will help to keep costs down. The production ID 2 will have three siblings — another VW brand small EV, a Cupra version and a Skoda variant.

The four EVs will use a shortened version of the MEB electric platform, which underpins the larger VW ID3 and ID4, along with Skoda and Audi compact EVs.

Schaefer said VW also plans to add an EV that costs less than 20,000 euros but developing such a model will be a “bigger challenge” than getting the ID2 to market.