Volkswagen now producing ID.4 electric SUV to take on Tesla's Model Y

Volkswagen has started producing the ID.4 compact SUV, which could compete with Tesla's Model Y, at its plant in Zwickau.

The ID.4 is Volkswagen's first electric SUV.

According to Ralf Brandstätter, head of the Volkswagen brand, the ID.4 will initially be built and sold in Europe and China, with US production in Chattanooga, Tennessee, slated in 2022.

He added that the ID.4 allows them to compete in "the world's largest growth segment."

The ID.4, which would make its world premiere in September, will have a range of up to 500 kilometers.

Audi, Volkswagen's luxury brand, has been producing its e-tron electric in Brussels, Belgium, since 2018.

Volkswagen, which also owns Porsche, Lamborghini Bugatti, Skoda, and SEAT, plans to spend $39 billion on electric mobility by 2024.

The German group hopes to produce 1.5 million electric cars in 2025.

The ID.4 is the second vehicle after the smaller ID.3 built on Volkswagen's modular electric car production platform at the plant in Zwickau, which has been converted for $1.4 billion to manufacture 300,000 electric vehicles a year.