Audi Q2 will not be renewed, brand to focus on higher-margin cars

There won’t be a second act for the Audi Q2 as the brand looks to abandon the lower-end of the market and focus on more profitable segments.

In an interview with Handelsblatt Markus Duesmann confirmed, “We have decided not to build the A1 [at the end of this model cycle], and there will be no successor model for the Q2 either”.

Duesmann told the business newspaper, “We will limit our range of models downwards and expand upwards”. The shift in the brand’s focus will see it “prioritise models with a higher profit share”.

This will see Audi tread in the same footprints as many other automakers, who are currently prioritising the production of larger and more expensive models during the global semiconductor shortage.

It also reflects a wider trend in the automotive industry as car makers concentrate their efforts on larger vehicles, as well as crossover models rather than traditional body styles, as they all carry heftier profit margins.

Ford, for example, has stopped making sedans and hatches for the US, while Stellantis quit its joint venture with Toyota leaving the city-friendly Aygo without a Citroen or Peugeot sibling for its third generation.

By not developing new versions of the A1 and Q2, Audi also frees up funds for new models further up the food chain, as well as money for its shift towards an all-EV range outside of China by 2023.

Although the Q2 and A1 won’t be heading into a new generation, they will stick around for a little while.

The Q2 was launched in 2016, and was given a facelift in 2020. If Audi’s regular model cycles are anything to go by, the Q2 will reach the end of its life in 2023 or 2024.

Given the second-generation A1 made its debut in 2018, the Polo-based hatch will likely live on until 2026 or so.

When Audi finally leaves the light car segment, it will bring the marque into better alignment with its German rivals, both of which kick off their lineups with small cars, like the 1 Series and A-Class.

This will see the entry price into the Audi range jump significantly. Currently the A1 starts at $33,200, while the entry-level version of the larger A3 begins at $46,300.

Similarly the Q2 is priced from $43,600, while the entry point for the Q3 range carries a $51,800 sticker price. (All quoted prices include GST, but exclude on-road costs.)

MORE: Everything Audi Q2

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