The group plans to bring a total of over 80 new electrified models to customers by 2025, including some 50 purely battery-powered vehicles and 30 plug-in hybrids as it doubles its investment in zero-emission vehicles to 20bn euros (£18bn) in a bid to put dieselgate behind it.
Speaking ahead of the Frankfurt show - Europe's premier new auto event of 2017 - VW chairman Dr Herbert Diess said the company anticipated that by 2025 demand for its ID models could reach a million per year.
The I.D. CROZZ gets one electric motor at the front axle and one at the rear, and torque distribution is controlled via an "electric propshaft".
It sits on a new platform VW has developed especially for its electric vehicle programme and at 15ft 2ins long is of similar proportion to the Tiguan Allspace.
There will also be the 4MOTION all-wheel drive system and a fast recharge time of up to 80% in half an hour.
Volkswagen Brand board of management chairman Dr Herbert Diess said the company would invest in electric mobility "to make modern technology available to many people".
It's definitely more aggressive, featuring none of that cartoonish demeanor that the I.D. Crozz II makes itself guilty of. The front doors will open conventionally and the rear doors will slide. By 2025, the Volkswagen Brand plans to offer 23 all-electric vehicles across its brands. Automakers are also searching for ways to adapt to a future in which people find ways of getting from one place to another without necessarily owning a vehicle, such as car-sharing or ride-hailing through smartphone apps. Output is rated at 225kW, capable of propelling the concept up to a top speed of 180km/h.
The Crozz is rumored to be the first of the ID vehicles to be offered for sale to the U.S. market. The company estimates the compact CUV could go 311 miles (500 kilometers on a charge).
Mueller also declared that the path towards Volkswagen's electric future would continue to utilise existing internal combustion technologies, with further development of current and next-generation petrol, diesel and compressed natural gas engines with petrol engines to adopt particulate filters and a new generation engine line to roll out from 2019 with vastly improved consumption and emissions.
The updated concept better reveals what a future production version will look like.