Volkswagen has announced that their entry-level EV based on the ID Life concept will go on sale in 2025 and cost 20,000 Euros.

Volkswagen brand said its ID Life crossover-styled concept previews a small full-electric car based on VW Group's MEB platform.

The ID Life was unveiled at the IAA Munich auto show. It's due to go on sale in 2025.

The production car will use an adapted version of the MEB platform, with the wheelbase shortened to about 2500 mm (about 98 inches) from 2770 mm for the ID3 compact, VW said.

The ID Life "captures our key competencies in electrification, software integration, quality and premium appeal," VW brand CEO Ralf Brandstaetter said during the car's presentation on Monday.

The production version will cost 20,000 to 25,000 euros, Brandstaetter said.

The scaling of MEB platform to include small cars and resulting cost savings was the "the key to entering 20,000 euro pricing segment," he added.

The shortened MEB platform would also provide small electric models for both Skoda and Seat's Cupra upscale brand, he said, adding that the small car family would "most likely" be built in Spain.

"We also intend to localize battery production there," Brandstaetter said.