Volkswagen AG unveiled an electric sport utility vehicle concept to challenge Tesla Inc.'s Model X as part of the auto industry's largest push into battery-powered vehicles.

The full-size SUV, available from 2021, features rotating lounge seats covered in so-called AppleSkin — an artificial leather made in part from apple juice waste, VW said ahead of the Shanghai auto show. The ID. Roomzz will follow the rollout of an all-electric hatchback and a compact crossover in 2020 as well as battery versions of the Lavida and Bora sedans in China this year.

China is forcing automakers to sell more electric vehicles and more battery-powered and hybrid cars to fight pollution. VW is fighting to keep profits from sliding as it spends an unprecedented €30 billion ($34 billion) to roll out the industry's largest fleet of EVs.