Following a year of imports from Germany, Volkswagen has begun producing the electric ID.4 at its Chattanooga, Tennessee, plant and will begin deliveries of the American-made models this fall.

It is also adding a new entry-level ID.4 Standard version of the compact SUV that starts at $38,790, compared to the current ID.4 Pros starting price of $42,525.

All ID.4s qualify for the existing $7,500 federal tax credit for electric vehicles. Its competitors include the Hyundai Ioniq 5 and Ford Mustang Mach-E.

The assembly line is part of an $800 million investment in expanding Volkswagen's U.S. electric vehicle production, and many of the ID.4s parts, including its battery pack, will be supplied by U.S.-based companies.

Volkswagen intends to increase production in Chattanooga to a rate of 7,000 vehicles monthly by the end of this year, with all the output earmarked for U.S. and North American sales.

The ID.4 has a 12-inch infotainment system display.

The two-wheel-drive Standard will be equipped with a 62 kilowatt-hour battery pack and rated for 208 miles of driving between charges, while the Pro has an 82 kilowatt-hour back and a range of 275 miles and will see its price increased to $43,790 for the 2023 model year.

Melange fabric and leatherette replaces traditional cloth as the standard upholstery.

All ID.4s come equipped with an advanced driver assistance system that includes automatic emergency brakes, adaptive cruise control and a parking assist feature that can pull the vehicle into and out of spaces. It can also be programmed to remember how to negotiate into a particular spot, like a driveway, at low speeds.

Additional trims offering more premium content, optional all-wheel-drive and varying driving ranges will be available, with a fully-loaded ID.4 Pro S Plus topping out at $55,290.

Volkswagen has delivered over 190,000 ID.4s worldwide so far, including more than 21,000 in the U.S.