Audi is changing its strategy: what about two known models

Audi will gradually abandon production of its A1, Q2 models, as it focuses on higher-margin vehicles.

Audi will eliminate two of its smallest vehicles, the A1 and Q2, as the carmaker focuses on more profitable and larger luxury vehicles.

The A1 hatchback and Q2 crossover will not be replaced at the end of their current life, Audi CEO Markus Duesmann told German business newspaper Handelsblatt.

The Volkswagen Group, Audi’s parent, has redefined the group’s individual brands, realigning Audi to its premium status, Duesmann said.

“We’re going to limit the range of models down and expand it up,” Duesmann said. “We give priority to other segments.”

The A1 was launched in 2010 and shares a VW Group platform with the small VW Polo and Seat Ibiza hatchbacks. The second generation A1 was put up for sale in 2018.

Q2 was introduced in 2016 as the smallest member of the Audi Q family of SUVs / crossovers. It is aimed at buyers of luxury cars, who want a practical vehicle for cities where parking is limited.

Audi sold 56,883 A1 units in Europe last year, down 1% from 2020, according to market researchers JATO Dynamics. Sales in Q2 fell 6% to 53,183.

The Germans are reorienting

Due to the permanent blockage of semiconductors, the VW Group, like other car manufacturers, uses the chips available in more profitable models whenever possible.

“In the group, we try to ensure the overall result. That’s why we give priority to models with a higher share of profit, “said Duesmann.

Duesmann said he expects improved semiconductor supply during the year.

Audi’s competitors, BMW and Mercedes-Benz, have also been building chips available mainly on expensive models, and have also been focusing more on high-end profitable cars and luxury cars in general for some time. Both car manufacturers are expanding their range in these segments.

Duesmann also reiterated Audi’s plan to develop a flagship all-electric luxury sedan based on its Grandsphere concept, which will feature a spacious interior, new electrical system and new software.

“We are on schedule and we will bring the model to the road in 2025,” he told Handelsblatt. “After that, there will be other models on the platform, including variants of Bentley and Porsche.”