The Volkswagen ID.3 promises to usher in a new era of mainstream electric vehicles, but it will eventually be followed by a more affordable hatchback.

Car Magazine says the company is working on an electric city car known as the ID.1 and codenamed the “e-Zzity.”

Designed to the replace the e-Up!, the ID.1 will be a small five-door hatchback that reportedly features styling reminiscent of the ID.3. It could also spawn a handful of derivatives including an ID.1 Crozz crossover and an e-Roomzz van.

Also Read: VW’s Updated e-Up Offers 161 Mile Range, Costs Less Than Its Predecessor

Like the ID.3, the model will ride on the MEB platform. However, the architecture will reportedly be “decontented” to keep costs down.

That isn’t the only cost saving measure as the ID.1 will reportedly have small batteries with capacities of 24 kWh and 36 kWh. With the latter, the model could have a range of around 185 miles (298 km). That isn’t very far, but range isn’t typically a strong suit for small electric cars like the Honda E and MINI Cooper Electric.

The ID.1 will reportedly be previewed by a concept in 2023 and go into production two years later. Volkswagen brand boss, Ralf Brandstätter, wouldn’t go into specifics, but he told the publication “We are working on a BEV [battery electric vehicle] below €20,000 ($23,191 / £18,205) – we can shrink the MEB architecture with less content to get the cost down.”

The report also says we can expect an ID.2 in the future. It will reportedly target the Renault Zoe and Peugeot e-208, but little is known about it at this point.

Note: VW ID.3 pictured