Investing.com — introduced a new compact electric SUV priced at approximately €28,000 ($32,000) as European consumers move away from gas-powered vehicles. The ID. Cross is now available for order, with sales of a smaller battery version to begin at a later date, the company said Wednesday.

The new model expands Volkswagen’s lineup of lower-cost electric vehicles, which includes the new Polo, Cupra Raval and Skoda Epiq. All models will be manufactured in Spain, where production costs are lower than in Germany.

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Sales of battery-electric and plug-in hybrid vehicles in Europe rose 29% through the first five months of this year, accounting for more than one-third of total registrations. Government subsidies in Germany and France, combined with elevated fuel prices linked to the Middle East conflict, have accelerated the transition to electric vehicles.

The expansion comes as Chinese automakers increase their presence in Europe. Companies including and captured 10% of the European market for the first time in May. Chery’s Jaecoo 7 SUV ranked as the third-most-popular model in the UK during the first half of the year.

Volkswagen CEO Oliver Blume said last week the company was surprised by how quickly Chinese manufacturers gained market share. Europe has become more important for Volkswagen as its sales decline in China and efforts to increase demand in the US face challenges.

Last week, Volkswagen discussed restructuring plans that could include cutting up to 100,000 jobs globally and potentially closing manufacturing facilities in Germany.