Audi revives a car that has been dead for 21 years – Photos

Audi is resurrecting the quirky A2, betting that a model tailored to European tastes can help restore the Volkswagen brand’s flagging profits.

The electric compact A2 e-tron will go on sale from €38,200 (R707,627) in Germany, travelling as far as 646 kilometres on a single charge, Audi said Monday.

The car revives the unconventional aluminium-bodied A2, which ceased production in 2005, whose minivan styling made it an outlier in the luxury nameplate’s lineup.

The A2’s return, looking more like one of today’s popular crossover models, heralds broader changes for Audi.

Brand head Gernot Döllner has put Europe back at the center of the brand’s recovery, breaking with the idea that broadly similar cars can serve buyers everywhere. 

The changes come as Audi has lost market share in China, while it’s also hamstrung in the US by its lack of local production.

Parent VW is undergoing its own deep restructuring, targeting fewer models, less complexity and lower costs.

“The A2 e-tron was developed with a clear focus on Europe, on the way people live, drive, and use their cars here,” Döllner said.

“It shows how we think about premium for Europe, using resources more intelligently.” 

Audi is wagering it can cater to regional tastes without creating expensive duplication on technology.

The A2, which will be made at its main Ingolstadt plant, is based on underpinnings that serve to make electric models including the VW ID.3 and ID.4, Audi Q4 e-tron, Škoda Enyaq and Cupra Born. 

Improving sales and profits at Audi is pivotal to the VW Group. The brand’s sales have plummeted in China and the US, leaving Europe as the key region where deliveries are growing.

During the first half of the year, VW’s so-called Progressive brand group, which includes Audi, generated an operating margin of just 3.8%, far below a target of 14% by 2030. 

Internally, Audi has struggled with rapid-fire management changes while its global business model has faced broad challenges.

Unlike rivals BMW and Mercedes-Benz Group, the manufacturer lacks its own US production, exposing it to tariffs.

At home, tensions with workers have intensified after VW Chief Executive Officer Oliver Blume’s management team identified Audi’s Neckarsulm plant as one of the German factories whose long-term future is in question.

For Audi, the A2 is supposed to show off early successes of the overhaul. The company says the model is coming to market 21 months faster than comparable predecessor programs.

It’ll use existing components and robots already calibrated for other vehicles, reducing the need for fresh investment. 

It joins a wave of retro-tinged urban EVs as Europe’s carmakers reach into their back catalogs that Chinese newcomers like BYD can’t easily copy.

These include Renault SA’s electric R5 and Fiat’s Grande Panda that wrap modern drivetrains in familiar silhouettes.

2026 Audi A2