Skoda has unveiled a new electric compact SUV that is due to go on sale next year.

The Epiq is expected to cost less than £25,000 when it enters the growing segment for cheap urban electric cars.

Key rivals will be the Fiat Panda and Renault 4, with the Epiq's underpinnings related to those of the Cupra Raval and VW ID2.

At 4.1 metres in length, Skoda says the Epiq will feature a spacious interior and up to 490 litres of luggage capacity.

The powertrain promises a range of up to 249 miles. It's likely the Epiq will utilise the same 38kWh and 56kWh battery options as the ID2.

Klaus Zellmer, CEO of Skoda Auto, saids: “The coming Škoda Epiq will package a lot of car for an attractive price and a big interior with a compact size. Our customers want choices, which is why we are expanding our growing e-mobility portfolio into this popular segment. I hope these first design teasers demonstrate that the Epiq will shine because of its modern design, everyday range and user-friendly technologies – all of it affordable.”