Volkswagen ID Crozz electric crossover concept updated at Frankfurt show

Volkswagen I.D. Crozz concept 2017

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Unlike Volvo, which already pledged to only sell cars with electric motors from 2019, VW isn't putting ICE on ice just yet. Three petrol and two diesel engines will be available, matched to six-speed manual of seven-speed auto transmissions.

China, the world's largest auto market, announced this week that it intends to ban the production and sale of vehicles powered only by fossil fuels. Mueller said the company would await firm commitments before reacting. Mueller confirmed there would be at least one electrified variant in each of the 300-plus models it makes, with 50 pure-electric vehicles and 30 plug-in hybrids added to the range by 2025. Tesla has started to roll out the $35,000 Model 3 to broaden its appeal and stem billions of dollars in losses.

According to Mueller, the group will require more than 150 gigawatt hours of battery capacity annually by 2025 for its electric vehicle fleet - the equivalent of four "gigafactories". Muller said the Group was initially aiming for electric models with a range of around 370 miles, and was also conducting research into solid state battery technology with a potential range of 1000 miles which he hoped could be brought to production by 2030.

Volkswagen will offer both front and all-wheel-drive versions of the model, and promises that it will combine the ability of an SUV with the driving dynamics of a hatch, and offer ride comfort that on a par with the Golf. The automaker has promised however, that these engines will deliver great performance while meeting emissions standards.

"We have not decided if we will build it in the USA", he said.

The automaker in Frankfurt is giving the public its first glimpse of the coming overhaul of the product portfolio.

Volkswagen has stepped up its shift toward the electric auto and is planning to invest over €20 billion or $24 billion in the zero-emission vehicles by 2030 as it tries to challenge the pioneer in the industry Tesla in creating mass market vehicles.

Volkswagen has taken the covers off its latest electric concept - the I.D. Crozz.

Yet the Frankfurt show remains a very big deal for the home team: Daimler AG's Mercedes-Benz luxury brand, Munich-based BMW AG, and Volkswagen, all of which will have giant display stands. "'Business as usual' is no longer enough".

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