US carmaker Ford is to produce its electric Mustang Mach-E in China, to take on rivals including Tesla's popular crossover Model Y in the world's largest vehicle market.

The model, which will be available in the second half this year, will have a wheelbase of 2,984 mm and a range of over 600 kilometers.

Ford called the model an "electric pony" that inherits the Mustang family's legendary sportscar performance and delivers driving pleasure.

Zhu Jiang, head of Ford China's electric vehicle program, said the model will be a challenger in China's premium electric vehicle segment represented by Tesla's Model Y and Nio's EC6.

"Years ago, they were challengers to the established auto industry. Now we are challengers in the field of electric vehicles," said Zhu, who worked as Nio's vice-president before joining Ford in 2020.

The model will feature Ford's latest infotainment system and Level 2 driver-assist technologies. In addition, the vehicle is capable of firmware updates over the air.

Ford is the first automobile manufacturer in China to offer cellular vehicle-to-everything technology and will deploy the technology in Mach-E to help improve traffic safety and efficiency.

The carmaker said the localized production of Mach-E is a key step in the company's electrification strategy. Ford is expected to invest $11.5 billion in the sector through 2022.

The Detroit Free Press reported that Ford Chairman, Bill Ford, was given a prototype of the Mach-E to drive in early October and he didn't want to give it back. The chairman is known for its love of the classic Mustang.

"We had had to pry it out of his hands," Hau Thai-Tang, Ford's chief product development officer, told the Detroit Free Press.

China is the world's largest new energy vehicle market. Sales of electric cars and plug-in hybrids reached 1.37 million in 2020, up 10.9 percent year-on-year.