Benzinga | Oct 20, 2021 03:52AM EDT

Volkswagen To Launch ID.3 EV In China On Friday, Looking To Take On Tesla, Nio With More-Affordable Vehicle

Volkswagen Group (OTC:VWAGY) is planning to launch the compact electric car ID.3 in China on Friday, cnEVpost reported, citing the company.

What Happened: The locally made compact electric will be the third such model from Volkswagen's ID. series lineup of electric vehicles.

The ID.3 is one of the top-selling electric cars in Europe.

Volkswagen already makes and sells the ID.4 and ID.6 electric vehicles in China.

The German automaker began delivering its first all-electric ID.4 Crozz in March this year, a model that it makes in partnership with China's FAW Group.

The ID.3 for China is made at a SAIC-Volkswagen jointly operated plant in Shanghai.

See Also: Volkswagen Has Secured 144,000 Orders For ID.3 EVs So Far This Year In Europe And Half Of These Are New Customers

Why It Matters: China, the world's second-largest automaker, is a key market for Volkswagen where it aims to sell up to 100,000 ID. series electric vehicles this year. While the automaker has much catching up to do to meet the target, the new launch is expected to lift sales due to a more affordable price point for ID.3.

The German automaker sold 1.85 million vehicles in the country in the first half of 2021, making China its single largest market with a 37% share of total volumes. Volkswagen brands make up for 18% share of the China auto market, as per LMC Automotive, reports the Wall Street Journal.

Tesla Inc (NASDAQ:TSLA) and Nio Inc (NYSE:NIO) have already made a head start with their electric vehicle lineup in China.

Volkswagen reported delivering 10,126 ID. series of electric vehicles in China, sitting neck-to-neck with local electric vehicles startups Nio and Xpeng Inc. (NYSE:XPEV), which delivered 10,628 and 10,412 units, respectively.

Price Action: VWAGY shares closed 0.16% higher at $31.17 a share on Friday.

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Photo: Courtesy of Volkswagen