Volkswagen will bring to market an all-electric vehicle for less than €20,000 euros ($22,500 USD) under its Seat brand in Europe.

This new cheaper model will come in the next 4-5 years, as the company is currently working on its MEB platform, which is going to support the launch of new all-electric vehicles starting this year with an electric hatchback. The vehicles on this platform are expected to make it to market for over €26,000 euros.

Speaking to the Financial Times, Seat’s chief executive Luca de Meo said:

“The planned starting price of under €20,000 means it would be the cheapest electric car on the market, one that many ordinary car buyers could afford.”

“We spent so many years trying to fix our things so we couldn’t afford to get into the hottest and most innovative areas. Now, because we are not busy with a fire brigade emergency, we can actually look a little bit more on the horizon.”

In the meantime, Seat will also launch new electric vehicles next year built on VW’s MEB platform.