Audi Unveils A2 e-tron to Combat Sales Decline and Chinese EV Competition

Audi, the premium automotive brand owned by Volkswagen, has unveiled a new compact electric vehicle, the A2 e-tron, as it seeks to reverse a two-year sales decline and counter growing competition from Chinese automakers in the European market.

A Strategic Shift to Compact EVs

The company's sales have been under pressure, falling for two consecutive years and declining by 7% in the first half of 2026, according to a Reuters report. The slump is attributed to intense competition in China and the impact of U.S. tariffs.

At the vehicle's press launch in Paris, Audi CEO Gernot Doellner emphasized a strategic pivot. "In Europe, we need compact and efficient cars for the future," Doellner told Reuters, adding that "premium cannot just mean more — more power, more resources — it has to mean using resources more intelligently."

A2 e-tron: Specifications and Positioning

The A2 e-tron revives a nameplate from the early 2000s and is positioned as the most efficient model in the brand's history. Key specifications announced by Audi include:

Ad

• Power consumption of 12.8 kilowatt hours per 100 km.
• A maximum range of 646 km (401 miles).

The vehicle will be manufactured at Audi's plant in Ingolstadt, Germany, with customer deliveries scheduled to begin in December. When asked about the competitive landscape, Doellner stated, "We see ourselves in a strong position when it comes to electromobility."

Broader Headwinds for Volkswagen Group

The launch comes as parent company Volkswagen confronts significant operational challenges. Last week, Volkswagen's supervisory board approved major job cuts to address the effects of tariffs, overcapacity, and aggressive competition from Chinese EV manufacturers.

These pressures are also affecting specific production sites. Doellner confirmed that Audi's Neckarsulm plant in Germany has no new model allocated beyond 2034. He stated the automaker will work with union representatives "to find measures to optimize the factory."