Audi unveils new compact EV to boost European sales amid competition

• Audi launched the A2 e-tron, a new compact electric vehicle.
• The A2 e-tron is designed to enhance Audi's position in the European market.
• The vehicle offers a power consumption of 12.8 kWh per 100 km and a range of 646 km.
• Deliveries are set to commence in December.
• Audi's Neckarsulm plant faces potential closure after 2030.

Audi has introduced a new compact electric vehicle, the A2 e-tron, in an effort to bolster its presence in the European market and revive its global sales. The German automaker, a unit of Volkswagen, has experienced declining sales for two consecutive years, with a 7% drop in the first half of 2026, attributed to intense competition in China and U.S. tariffs.

Audi CEO Gernot Doellner stated that "premium cannot just mean more — more power, more resources — it has to mean using resources more intelligently," highlighting the strategic importance of compact and efficient vehicles for the future in Europe. The new A2 e-tron, a revival of an earlier model, features modern efficiencies such as low power consumption of 12.8 kilowatt hours per 100 km and a maximum range of 646 km (401 miles), making it Audi's most efficient model to date.

Production of the A2 e-tron will occur at Audi's plant in Ingolstadt, Germany, with deliveries expected to begin in December. Doellner expressed confidence in Audi's position regarding electromobility, despite the competitive landscape presented by Chinese EV manufacturers. This move follows Volkswagen's recent approval of significant job cuts aimed at addressing market challenges, including tariffs, overcapacity, and competition from Chinese rivals. Concerns have also been raised about the future of Audi's Neckarsulm plant, which may face closure after 2030 due to a lack of allocated new models, prompting discussions with union representatives to optimize its operations.