Audi Will Launch an Entry-Level Electric Car in 2026

The EV will be made at home in Ingolstadt.

Audi A3 Sportback TFSI e

Photo by: Audi

Adrian Padeanu

By: Adrian Padeanu

Mar 25, 2025 at 4:07am ET

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It’s safe to say Audi’s transition to a fully electric lineup isn’t unfolding as planned. The automaker recently shut down its Brussels plant in Belgium due to weak Q8 E-Tron sales. In 2024, demand for EVs carrying the Four Rings dropped 7.8 percent to 164,480 units. Given this decline, Audi is already reconsidering its ambitious goal of going fully electric by 2032. Additionally, it'll likely continue to launch new gas cars after 2026.

Despite these struggles, the company is pushing forward with its EV expansion. After prioritizing larger, more expensive models, Audi is finally developing a more affordable entry-level EV. Initially slated for 2027, the model’s launch has been moved up to 2026. In an interview with Süddeutsche Zeitung, the CEO confirmed that a new electric vehicle in the A3 segment is coming.

Gernot Döllner didn’t reveal many details about the new electric car, only confirming that it will be built domestically in Ingolstadt, Germany. So, what could it be? A couple of plausible scenarios come to mind. Audi might consider launching a fancier iteration of the Volkswagen ID.3. However, it might be too late for that. The ID.3 has already been on the market for about five years.

Alternatively, the model could be based on the ID.2all, a concept unveiled a couple of years ago. VW plans to launch the production-ready ID.2 in 2026 with a starting price of around €25,000. An Audi equivalent would undoubtedly carry a premium but remain significantly cheaper than the Q4 E-Tron, which starts at €46,150 in Germany.

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We are ruling out Audi’s take on the ninth-generation Golf because Wolfsburg’s EV won’t be out until the decade's end. The all-new, electric-only Golf is being developed with Rivian and will sit on the SSP architecture. Meanwhile, the VW Group uses two MEB architecture variants for its volume-focused products. The rear-wheel-drive MEB for cars like the ID.3 and up, along with the front-wheel-drive MEB Small for the ID.2 and the future €20,000 ID.1, due in 2027.

Our money would be on a higher-end ID.2. The hatchback would be a much smaller car than the new CLA, which now has the role of Mercedes' most affordable electric car. BMW won't have a true entry-level EV until closer to 2030 when the i1 or i2 are reportedly set to hit the market.