Volkswagen (OTCPK:VWAGY) is planning to develop a small electric car for the mass market, according to Reuters.
The German automaker is looking to be well positioned for a new green era under its Small BEV (Battery Electric Vehicle) program.
The new all-electric EV models is said to around the size of a Polo and cheaper than Volkswagen's ID.3 electric car, which went on sale in September and blew past Tesla (NASDAQ:TSLA) and Renault (OTC:RNSDF) models to become the best selling electric car in Europe in October
Volkswagen execs have said that the European Union's more stringent emissions targets will force it to boost the proportion of hybrid and electric vehicles in Europe to 60% of production by 2030 from a previous target of 40%.
The VW brand currently plans to build 1.5M electric cars by 2025.