Audi Is Dropping An Affordable Electric A3 Next Year
Audi may have changed course and scrapped the mission to go all-electric by 2032, but that doesn’t mean the brand is just going back to internal combustion engines. It could be because just pulling the plug on electric cars on their way (pun absolutely intended) is a financial waste or because Audi still sees a market in some segments, or both, but Audi CEO Gernot Döllner told the German language Süddeutsche Zeitung that a new electric vehicle will begin production in 2026.
According to Döllner via translation, “It will be an electric vehicle in the class in which the A3 is also located.”
Audi
Audi is a German automaker that produces a range of luxury vehicles that combine sporty driving dynamics with the latest technology. Its history goes back over 100 years and includes both production cars and a rich racing heritage. Now owned by the Volkswagen Group, Audi rivals BMW and Mercedes with a range of luxurious sedans and SUVs in all the core premium segments.
- Founded
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1909
- Founder
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August Horch
- Headquarters
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Ingolstadt, Germany
- Owned By
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Volkswagen Group
- Current CEO
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Gernot Döllner
An All-New Audi Entry-Level Model
That means an entry-level compact sedan or hatchback, or Döllner could be having a little fun, and it will be a direct electric version of the Audi A3, which is due a new generation. The A3 landed in 2020 and had a refresh in 2024, so around 2026 or 2027 would be about right for the next generation. It’s possible that Audi was planning on not making another gas-powered Audi A3 and is now making other plans. We wouldn’t write off the idea of a hybrid and all-electric version at this point.
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It’s All About The Platforms
Given the timing of the announcement gives the landing date only a year away, chances are the new car will use the existing Volkswagen Group MEB architecture. The MEB platform underpins all of the Volkswagen ID models, but Audi also uses it for the Audi Q4 e-tron. The next-generation Volkswagen Group Scalable Systems Platform (SSP) isn’t due now until 2029 or 2030 at the earliest – likely due to Volkswagen Group’s software division, Cariad, experiencing delays in software development.
According to then-Volkswagen CEO Herbert Diess, the SSP system would underpin every vehicle under the Volkswagen Group banner, which includes Audi and Porsche. We suspect he didn’t mean Bugatti, though. Things tend to be a bit more bespoke over there.
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Another reason 2026 may be the target is if the entry-level EV turns out to be Audi’s version of the upcoming ID.2, which looks to be a four-door hatchback. The ID.2 will be built in Spain, but according to the report, Döllner explicitly says the new Audi model will be built in Ingolstadt, Germany. All this is at a time when Audi is figuring out how to solve a lot of problems, including how to deal with the US’s tariffs and weaker-than-expected EV sales.
Neither of those are Audi-specific problems, but as it eases up its all-electric vehicle push, the brand plans to increase flexibility at German production sites and reduce labor costs. This includes a “socially responsible reduction” of up to 7,500 jobs by 2029.
Source: Süddeutsche Zeitung