German Auto

BMW had hoped to use the iX3 to challenge Tesla and new car makers, including Nio, in the Chinese market.

FAW-Volkswagen had planned to produce about 610,000 vehicles in the second quarter of this year, but due to chip shortages, it is expected to produce only 400,000 vehicles, a cut of about 30 percent, yicai.com reported Monday.

Volkswagen China said Tuesday it has started construction of its third electric vehicle plant in China, with the first model due to start production in the second half of 2023.

The chips that caused FAW-VW Audi to reduce production are mainly door controller, gateway controller, center display, and electronic stability control.

The ID.4 CROZZ is based on VW's MEB platform and is considered the first truly market-competitive all-electric vehicle for a joint venture brand in China.

The model is available in five versions, with a subsidized price range of RMB 199,900 ($30,745)–RMB 279,900. It is available in three NEDC range versions: 400km, 500km, and 550km.

BMW announced on January 27 that it is adjusting the price of its all-electric SUV, the BMW iX3, in a move believed to be a response to the Tesla Model Y's pricing in China to secure sales.

FAW-Volkswagen announced on January 19 that it has opened pre-orders for its first all-electric SUV, the ID.4 CROZZ, and announced a starting price of RMB 199,900 ($30,854) after subsidies.

Automobile markets have now recovered significantly and the industry faces a shortage of the electronic components required.