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Volkswagen AG’s namesake brand is unveiling its first fully electric sedan, as the carmaker struggles to move past software setbacks that have hurt sales in markets from Europe to China.
The spacious ID.7, which starts at less than €60,000 ($66,000), marks a key effort to compete with Tesla’s Model 3 and a range of Chinese startups. With the launch in Berlin and Shanghai, VW aims to highlight features from assisted parking to its 15-inch screen.
The move offers VW a chance to reset the turbulent rollout of its battery-powered ID series, which has been beset by tech problems including infrequent and buggy updates, a poorly functioning navigation system and a glitchy smartphone app. With the ID.7, VW is taking a swing at some of the most sought-after features offered by Tesla, BYD Co, and other competitors: a standard augmented reality display that beams information into the driver’s field of vision, voice-activated controls, and assisted parking and lane-changing. The model also boasts a range of 700 kilometers (435 miles) on a single charge.
But the ID.7 will face intense competition as consumers look for better technology at lower prices. Manufacturers including Tesla have been forced to cut prices in key markets including China over the past several months.
Series production of the ID.7 will start in the second half of this year in Germany for the European market and in China for customers there. The German-made model is set to hit showrooms in Europe this fall and the North American market next year.