In this study, we consider the challenges in motion planning for automated driving systems. Most of the existing online motion-planning algorithms, which take dynamics into account, find it difficult to operate in an environment with narrow passages. Some of the existing algorithms overcome this by offline preprocessing if environment is known. In this work an online algorithm for motion planning with dynamics in an unknown cluttered environment with narrow passages is presented. It utilizes an idea of hybrid planning with sampling- and discretization-based motion planners, which run simultaneously in a full configuration space and a derived reduced space. The proposed algorithm has been implemented and tested with a real autonomous vehicle. It provides significant improvements in computational time performance over basic planning algorithms and allows the generation of smoother paths than those generated by the recently developed hybrid motion planners.