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 German automaker Volkswagen has recalled nearly 21,000 of its 'ID.4' electric SUVs over faulty battery software that could lead to a "loss of propulsion" sans warning.

A reset or deactivation may cause a loss of drive power, increasing the risk of a crash in the recalled EVs.

The recall affects 2021 models produced between May 26, 2020, and January 20, 2022.

According to an advisory by the National Highway Traffic Safety Administration (NHTSA) in the US, Volkswagen is recalling certain 2021 ID.4 vehicles as "software programing may cause the high voltage (HV) battery management control module to restart or the pulse inverter to deactivate".

Dealers will update the HV battery management control unit and the pulse inverter control unit software, free of charge.

"Owner notification letters are expected to be mailed March 31, 2023," said the NHTSA.

The fix for the ID.4 EV issue is new software for the high-voltage battery management control unit and the pulse inverter control unit.

The automaker came into action after receiving reports from Europe of a potential "software issue" and some owners in the US alleged that the battery software issue could lead to the vehicle stalling out.

Ford last year issued a recall for 49,000 Mustang Mach-E SUVs over concerns that a safety defect may render the vehicle immobile.

American automaker General Motors expanded the recall of Chevy Bolt electric vehicles equipped with South Korean supplier LG's batteries over fire risks, which is expected to additionally cost about $1 billion.

The recall covered 73,000 Bolt EVs and EUVs from model years 2019 through 2022 sold in the US and Canada to replace the defective battery modules.

Elon Musk-run Tesla in November last year recalled more than 321,000 vehicles for a software glitch and deployed an over-the-air (OTA) firmware update to correct the anomaly in tail lights that may cause false fault detections.