Rahul Somvanshi
After prioritizing larger premium EVs, Audi is shifting gears toward the affordable segment with a new compact electric vehicle slated for 2026. Initially planned for 2027, this entry-level EV will target the A3 segment and be manufactured in Ingolstadt, Germany.
Audi CEO Gernot Döllner confirmed to German newspaper Süddeutsche Zeitung: “It will be an electric vehicle in the same class as the A3.” The announcement comes as Audi faces challenges in its electric transition, with EV sales dropping 7.8 percent to 164,480 units in 2024, prompting a reconsideration of its all-electric 2032 target.
Platform and Production
The timing suggests Audi will likely use the established MEB (Modular Electric Drive Matrix) platform rather than waiting for the next-generation SSP (Scalable Systems Platform) expected around 2028-2029. The MEB platform currently underpins the Audi Q4 e-tron and Volkswagen‘s ID series.
Industry analysts speculate two possible directions: a premium version of the Volkswagen ID.3 (though this model is already five years old) or more likely, a luxury variant of the upcoming Volkswagen ID.2, which targets a €25,000 price point for its 2026 launch.
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Market Position and Competition
This smaller EV would slot below Audi’s current entry-level electric offering, the Q4 E-Tron, which starts at €46,150 in Germany. While pricing remains unannounced, it will certainly carry a premium over Volkswagen’s ID.2.
The timing positions Audi ahead of BMW, which reportedly won’t have a true entry-level EV until closer to 2030 with its rumored i1 or i2 models. Mercedes has repositioned its new CLA as its most affordable electric car.
Technical Expectations
Though specifications remain undisclosed, if based on the ID.2all concept, consumers might expect:
- Range up to 450 km (approximately 280 miles) on the WLTP cycle
- Power output around 222 horsepower
- Front-wheel drive architecture
Corporate Context
This compact EV forms part of Audi’s evolving electric strategy amid market headwinds. The company recently shut down its Brussels plant due to weak Q8 E-Tron sales and announced plans to cut 7,500 jobs in Germany by 2029.
Meanwhile, Audi continues expanding its global presence, with plans to introduce another new model in China this April, developed locally with partner SAIC.
The challenge for Audi remains delivering a properly premium experience at a more accessible price point—balancing affordability with the brand’s luxury expectations as competition in the compact EV segment intensifies.
Frequently Asked Questions
Audi plans to release its new compact A3-sized electric vehicle in 2026. This is actually earlier than initially planned, as the release was originally scheduled for 2027 but has been moved forward by a year.
While Audi hasn’t announced official pricing, industry analysts expect it to cost more than the Volkswagen ID.2 (targeted around €25,000 or $27,000) but significantly less than Audi’s current entry-level EV, the Q4 E-Tron, which starts at €46,150 in Germany. As a premium variant, it will likely carry Audi’s luxury pricing strategy while still being the brand’s most affordable electric option.
Official specifications haven’t been released yet. However, if based on the Volkswagen ID.2all concept (which is likely), the compact Audi EV might offer up to 450 km (approximately 280 miles) of range on the WLTP cycle and around 222 horsepower. Audi may enhance these figures to differentiate their premium offering from Volkswagen’s models.
Audi CEO Gernot Döllner confirmed that the new compact electric vehicle will be manufactured at Audi’s Ingolstadt plant in Germany. This domestic production strategy differs from some other EV models that are produced in various global locations.
Audi’s 2026 release timeline positions it ahead of BMW, which reportedly won’t have a true entry-level EV until closer to 2030 with its rumored i1 or i2 models. Mercedes has already made moves in this space with its new CLA positioned as its most affordable electric car. This makes Audi relatively early among German luxury brands to enter the compact EV segment.
Yes and no. While this model is part of Audi’s electric vehicle expansion, the company has recently reconsidered its ambitious goal of going fully electric by 2032. According to reports, Audi will likely continue to launch new gasoline-powered cars after 2026. This adjustment comes as Audi faces challenges in EV adoption, with sales dropping 7.8 percent to 164,480 units in 2024.
