New cut-price electric car spied testing in heavy camouflage: 2025 Volkswagen ID.2 edges spotted in elaborate ID.3 disguise as it edges closer to taking on the BYD Dolphin, MG4 and Hyundai Inster: Report

Volkswagen’s new entry-level electric hatchback, the ID.2, has been spotted running laps on the Nurburgring in Germany.

It comes after the ID2.All concept was revealed by the German automaker in March 2023 and is the clearest sign to date of the model inching closer to full-scale production.

Images captured by Carscoops show the test vehicle as what first appears to be an ID.3, but closer inspection reveals the body has been modified with smaller passenger doors to fit the shrunken wheelbase. The charging port has also been grafted to the passenger side front fender.

Volkswagen foreshadowed a 2025 release for the ID.2 at the concept's debut last year but reports have suggested the ID.2 could be delayed. Judging by the deep camouflage of this mule, that is a strong possibility.

We know a few details about the ID.2 already, including that it will be built on Volkswagen's new MEB Entry platform as a budget-friendly electric vehicle. The ID.2 will be front-wheel drive, with what Volkswagen has said will be efficient battery and charging technology.

The sporty ID. GTI concept promised 166kW with a WLTP driving range of 450km. This platform will be shared with Cupra's Raval and a model from Skoda, not unlike the Group's last affordable project that spawned the Up!.

Volkswagen ID.2 (Image: Carscoops)

VW has promised the ID.2 will cost under €25,000 ($41,435) and the carmaker not alone in this cheap electric car dream. The BYD Dolphin is making inroads, while Hyundai has launched the cut-price Inster in Korea, Renault is reviving the Twingo and Ford is investigating a new electric Fiesta.

The ID. 2’s release is slated to be shortly followed by a compact crossover.

Volkswagen have speculated it will arrive in 2026 and teasers have shown a more rugged looking SUV.