Volkswagen is facing delays in launching its ID.3 electric hatchback in the coming months due to software issues.

German newspaper Suddeutsche Zeitung says examples of the EV had been rolling out of the factory in Zwickau, Germany, before production was halted due to the coronavirus.

But the newspaper says that these cars are effectively 'dead', meaning they don't have the necessary software to run or use them. 

VW is hoping to introduce a basic version of the ID.3's operating system (OS) into these cars once it has been finished, the newspaper reported.

However, the software project is described internally as an "absolute disaster", with the company failing to employ the software experts needed to fix the wide-ranging issues, says Autocar.co.uk.

Volkswagen wants to sell 100,000 EVs globally by the end of this year to reduce fines from the European Union due to fleet average CO2 emissions. The ID.3 was an important factor for VW, making up a majority of its sales.

The ID.3 was unveiled at last year’s Frankfurt motor show, and is built on VW Group’s MEB compact platform for its electric vehicles.

It would have a range of up to 420km.

Volkswagen Passenger NZ general manager, Greg Leet, was at the Frankfurt motor and the ID.3 coming to New Zealand was “on the top of my list” of discussions with his VW bosses.

The ID.3 is a rival to Nissan’s Leaf.