Watch out Volkswagen! China's latest electric hatchback will arrive this year and cost £5k less than a VW ID.3

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Leapmotor is taking on Volkswagen's smallest electric car in the latest battle of Chinese and European brands unravelling on our doorstep.

The Hangzhou auto firm's new A05 electric hatchback will go up against VW's ID.3 battery-powered family motor as Leapmotor looks to cement itself among mainstream brands in Europe.

First pictures of the A05, published by China's Ministry of Industry and Information Technology (MIIT), show that it follows quite closely the manufacturer's larger B03X crossover - an EV that also goes on sale this year. 

The smaller hatchback will likely start from around £25,000 when it arrives later in 2026.

With Leapmotor already having a strong footprint of undercutting European competition - as do many Chinese brands - the A05 looks set to follow in these tyre tracks.

It should be priced around £5,000 below the entry Volkswagen ID.3, which starts from £30,860 inclusive of the government's £1,500 Electric Car Grant discount. 

Leapmotor's new compact family hatchback has been leaked on an official Chinese Government website - and it's clear from the images that it's coming for the VW ID.3

While the VW ID.3 (pictured) currently costs from £30k, its new Chinese rival will be around £5k cheaper. As you can see, the Leapmotor's styling has Volkswagen's hatch in mind...

Based on the same MIIT filing, the A05 will be powered by a single front-mounted motor and produced either 94bhp or 121bhp. 

There will be two sizes of lithium-iron-phosphate batteries, but size and further information hasn't been revealed.

The A05 will be a small car, measuring 4.2 metres long, 1.8 metres wide and 1.6 metres tall, but it will still be able to fit into family life as it will be around the same size as a Renault Megane or MG4 EV.

The A05 will also battle Chinese competitor BYD as the world's largest EV maker has its Dolphin EV model on the market for just over £30k.

The family-sized hatchback will likely start from around £25,000 when it arrives later in 2026. That will undercut most European rivals, including Volkswagen's ID.3

VW will next month unveil its replacement for the ID.3, which will carry a new 'Neo' nameplate

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First images show the same front end and headlight design as its B03X sibling and the A05 will slot below the bigger model to become the brand's entry-level compact car.

Leapmotor is expected to reveal the A05 in the coming months in China before it makes its way to the UK.

The company, which was founded in 2015 and started selling vehicles in 2019, is backed by European car giant Stellantis, with the joint venture between the two brands focusing on global sales of high-tech, inexpensive Chinese new energy vehicles (NEVs).

Leapmotor has targeted reaching one million vehicle sales in 2026, and is focusing on cost-effective, compact models like the A05 to achieve its ambitions.

Volkswagen will next month unveil its replacement for the ID.3, which will be called the ID.3 Neo.

It is expected to be debuted in mid-April and feature a host of new functions. 

These include, for example, the enhanced Travel Assist with traffic light detection and One Pedal Driving, where the vehicle can detect when there's a read light up ahead and recuperate energy into the battery from the regenerative braking until it comes to a standstill.