A joint venture between Volkswagen AG (OTC: VWAGY) and China’s state-owned First Automobile Works delivered its first electric sports utility vehicle — the SUV ID.4 Crozz — to 12 customers over the weekend in Shenzhen.
What Happened: The SUV, available in five models, ranges in price between RMB 199,000 ($30,720) to RMB 279,900 ($43,000) after subsidies and has a range of between 400 KM (248 Miles) to 550 KM (342 Miles), CnEVPost reported.
The SUV is built on Volkswagen’s $7 billion modular MEB platform and is considered the first truly competitive vehicle for the Chinese market for the joint venture, as per CnEVPost.
The MEB plant of the JV — located in Foshan, Guangdong province — currently produces in excess of 600,000 units and is expected to make 770,000 units by 2024.
Why It Matters: Volkswagen OTC shares have soared 68.2% since the year began and rose 29.25% higher last Wednesday alone after the company revealed its technology roadmap for batteries and charging up to 2030.
Wuling Motors — a joint venture between General Motors Compay (NYSE: GM) and state-owned SAIC Motor — has also found success with its Hong Guang Mini EV, which sells for $4,500 in China.
The two-door car outsold Tesla Inc’s (NASDAQ: TSLA) Model 3 last month. The sedan made by the Elon Musk-led company sells for $39,000 in China.
Tesla’s Model Y SUV was the best-selling electric car in China in February with 4,630 units sold. Xpeng Inc (NYSE: XPEV) delivered 2,223 deliveries and Nio Inc (NYSE: NIO) 707 units in the same month.
Price Action: Volkswagen OTC shares closed nearly 5% lower at $34.15 on Friday.