Audi Unveils Compact EV to Boost European Market Presence and Sales

On Monday, German premium automaker Audi unveiled a new compact electric car aimed at strengthening its position in the lower end of the European market, where Chinese manufacturers are rolling out more affordable models, and to support a recovery in worldwide sales.

Audi, a Volkswagen subsidiary, has experienced declining sales for two straight years, with a 7% drop in the first six months of 2026 due to intense competition in China and the impact of U.S. tariffs on demand.

Speaking to Reuters at a 200-year-old industrial venue in central Paris where the new A2 e-tron was presented to journalists, Audi CEO Gernot Doellner said, "In Europe, we need compact and efficient cars for the future."

Doellner added, "Premium cannot just mean more — more power, more resources — it has to mean using resources more intelligently."

The new A2 revives a nameplate from the early 2000s while bringing contemporary technology, such as energy consumption of 12.8 kilowatt-hours per 100 km, which Audi says makes it the most efficient model in the brand's history. The car offers a maximum driving range of 646 kilometers (401 miles).

Deliveries begin in December.

The A2 will be produced at Audi's plant in Ingolstadt, Germany, with customer deliveries scheduled to start in December.

Asked about intense Chinese EV competition in Europe, Doellner said: "We see ourselves in a strong position when it comes to electromobility."

The previous week, Volkswagen's supervisory board unanimously approved sweeping job cuts to counter painful tariffs, overcapacity, and aggressive Chinese rivals.

Audi's Neckarsulm plant in southwestern Germany is one of four German Volkswagen factories that risk being closed after 2030.

Audi must review its current commitments at Neckarsulm, Doellner said, noting that no new model is allocated there after 2034. The company will work with union representatives, he added, "to find measures to optimize the factory."