London (CNN Business) Production has started in Germany on the first electric SUV from the Volkswagen brand, marking the latest push by the world's largest carmaker into cleaner vehicles. Volkswagen announced Thursday that production of the ID.4 compact SUV has commenced at its plant in Zwickau, which has been converted at a cost of €1.2 billion (1.4 billion) to manufacture 300,000 electric vehicles a year. Tesla TSLA The ID.4 could help Volkswagen compete with, which already offers an electric SUV called the Model Y. Audi, Volkswagen's luxury brand, has been producing an electric SUV called the e-tron at a factory in Brussels, Belgium, since late 2018. Ralf Brandstätter, head of the Volkswagen brand , said in a statement that the ID.4 allows the carmaker to offer an electric vehicle in "the world's largest growth segment." Volkswagen VLKAF According to, the SUV will have a range of up to 500 kilometres (311 miles).

Source: CNN August 20, 2020 11:15 UTC