Volkswagen unveils fully-electric SUV for China market

Volkswagen AG's Roomzz concept Sport Utility Vehicle. (Volkswagen AG)

Volkswagen is planning to release a fully-electric SUV in China which could compete with Tesla's Model X.

The German automaker said Sunday the ID. ROOMZZ will be unveiled at the upcoming Shanghai Auto Show and will be available in 2021.

Volkswagen says the zero-emission vehicle can go approximately 450 kilometres (280 miles) before the battery has to be recharged. The concept car includes a fully-automatic driving mode which allows seats to be rotated 25 degrees to create a lounge-like atmosphere.

The announcement comes one month after Volkswagen's former CEO Martin Winterkorn was charged by U.S. regulators with defrauding investors during its massive diesel emissions scandal.

Volkswagen has said it will boost electric vehicle production to 22 million over the next decade. It made fewer than 50,000 battery-only vehicles last year.