But will it be good enough to challenge high volume models like the Volkswagen ID.3?

According to a Citroën spokesperson in a recent Carscoops' article, there is a new all-electric compact hatchback model in the pipeline. However, it will not be a standalone BEV model, but a general approach with ICE/BEV powertrain options based on the e-CMP platform.

“The next Citroen C-segment hatch will offer petrol, diesel and 100 percent electric powertrains, on Group PSA’s new CMP platform,”

It's not yet clear whether that means the next-generation Citroën C4 or a completely new name, but at least we know that the French manufacturer is going to challenge Volkswagen ID.3 and Nissan LEAF in Europe.

PSA already announced f ew all-electric models based on the e-CMP with a 50 kWh battery:

Source: carscoops.com