FRANKFURT -- Volkswagen will price the first production run of its ID4 full-electric crossover below its rival, the Tesla Model Y.
In Germany, the ID4 launch edition, called the ID4 1st, will start at 49,950 euros ($58,896) excluding subsidies. The Model Y starts at 58,620 euros. VW will limit production of the launch edition to 27,000 units.
The ID4 starts the global rollout of cars built on VW Group's mass-market MEB electric platform. It follows the ID3 compact hatchback, which is currently being launched in Europe.
Unlike the Europe-focused ID3, the ID4 will be a global model, with the U.S. and China as key markets.
The ID4's launch is even more essential to the success of VW's electric-car push because it targets the hot crossover segment.
VW brand CEO Ralf Brandstätter said the ID4 opens the door to a high-volume segment, and his management team forecasts output to hit half a million units annually by 2025 -- a third of the anticipated production of the ID family.
"The ID4 will take on a central role as the brand's first fully electric SUV and the new global car from Volkswagen," he told reporters during a briefing ahead of the car's unveiling on Wednesday. "It will be delivered to customers before the end of this year."
VW last month began production of the ID4 in Zwickau, Germany, where the ID3 is also built. ID4 production will start this year at VW's plants in Anting and Foshan, China. U.S. production in Chattanooga, Tennessee, is slated to being in 2022.