Audi introduces new compact EV in bid to boost European sales

Premium German automaker Audi unveiled a new compact electric vehicle on Monday in a bid to strengthen its position in the European market, where Chinese manufacturers are introducing more budget-friendly options and reignite its global sales. Audi, a subsidiary of Volkswagen, has experienced declining sales for two straight years, with a 7% drop in the first half of 2026 due to intense competition in China and U.S. tariffs.

At Audi's headquarters in Paris, CEO Gernot Doellner introduced the A2 e-tron at a two-century-old industrial facility. He emphasized that premium doesn't merely imply higher power or resources but also entails maximizing resource utilization effectively. The A2 is a reincarnation of a nameplate from the early 2000s, yet it incorporates contemporary features such as a low energy consumption of 12.8 kilowatt-hours per 100 kilometers, making it the most efficient model in Audi's history. The vehicle boasts a range of 646 km (401 miles).

The A2 will be manufactured at Audi's Ingolstadt plant in Germany, with deliveries commencing in December. Doellner expressed confidence in the company's position in electromobility. Last week, Volkswagen's supervisory board unanimously endorsed substantial workforce reductions to address the challenges posed by tariffs, overcapacity, and the aggressive expansion of Chinese rivals.

The Neckarsulm plant in southwest Germany, one of four German Volkswagen plants potentially facing closure after 2030, is also under scrutiny. Doellner stated that there are no new models scheduled for the plant after 2034 and that the company will collaborate with union representatives to identify ways to streamline the factory operations.