SHANGHAI (Reuters) – Volkswagen plans to build a fully electric sports utility vehicle (SUV) for China from 2021, taking on the Chinese market leader Tesla’s Model X as the German carmaker ramps up production of zero emissions vehicles.

FILE PHOTO: A Volkswagen Golf GTE being charged during a workshop prior to Auto Guangzhou in Guangzhou, China November 16, 2017. REUTERS/Bobby Yip/File Photo

The planned new SUV is the latest move in Volkswagen’s aggressive growth strategy in China, where electric cars are given preferential treatment by authorities.

VW said its ID ROOMZZ, which it presented in Shanghai on Sunday, will have three rows of seats and an operating range of up to 450 kms. The concept car is capable of a “level 4 autonomous driving”, VW said.

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