The all-new Volkswagen ID.3, at this very moment, is rolling off the production line in Zwickau, Germany. The plant used to build the VW Golf, but now it's been converted for electric vehicles only. The upcoming Audi Q4 e-tron is slated to be built there as well, as is the VW ID.4, which will go on sale in the US next year. But another EV is also likely happening, and this one has the potential to cause serious internal competition for none other than the VW Golf GTI.

A new report from Autocar claims VW management is nearly ready to sign off on plans to build a hot version of the ID.3. Let's call it the ID.3 R for now. We knew the automaker had been considering such a vehicle for some time, but specific plans will need to be decided very soon.

Technically speaking, a hot ID.3 hatchback is possible, but there's still one thing VW must confirm: Is the market strong enough? Obviously, America is sadly not in the picture, so Europe is the focus. Given the GTI's long-time popularity throughout the continent, there's no reason to think an ID.3 R couldn't achieve success as well. Currently, the most powerful ID.3 has 201 horsepower but the ID.3 R could have at least 300 hp. The new GTI has 245 hp.

VW development boss Frank Welsch did confirm the proposed ID.3 R would sit at the top of the ID.3 lineup, which makes sense. At the same time, VW is now making a final determination regarding market potential. Its R&D team is already at work to see how the ID R race car's performance batteries can be adapted to road car use. The chances are very high a solution will be found.

Assuming the project receives the green light, don't expect the ID.3 R to debut before 2024. This will give the all-new GTI time to shine. If the ID.3 R were to replace the GTI in the lineup, it wouldn't happen for quite a while. VW is reportedly in no rush to make such a decision. As for the ID.4, is a hot version also planned? The answer is a clear "no," at least for the foreseeable future. Instead, VW wants to pursue the ID.4 GTX, which will feature a twin-motor and four-wheel-drive. The ID.3 R is expected to be RWD only.

A final decision regarding this all-electric hot hatchback's future should come within the next 12 months.