Automakers are flocking to setup shop in a new location and it has nothing to do with Trump’s tariffs. in fact, quite the opposite, as Saudi Arabia has emerged as the automotive production capital of the Middle East.

Things kicked into high gear in 2023 when Lucid opened Advanced Manufacturing Plant 2 in the Kingdom. It assembles the Air using  semi-knock-down kits that are “pre-manufactured” at the company’s main plant in Casa Grande, Arizona.

More: Lucid Opens New Plant In Saudi Arabia, Will Build The Air EV

However, the plant aims to become a fully fledged production facility later this decade. If everything goes according to plan, it will be able to build up to 150,000 vehicles annually, which will be sold in Saudi Arabia as well as export markets.

While the Lucid plant wasn’t surprising considering Saudi Arabia’s Public Investment Fund owned over 60% of the automaker at the time, Hyundai has now broken ground on a new plant in the King Salman Automotive Cluster within the King Abdullah Economic City. It will become the company’s first “production base” in the Middle East and it lays the “foundation for becoming a leading brand in Saudi Arabia.”

The plant is slated to open in the fourth quarter of 2026 and have an annual production capacity of 50,000 units. The company didn’t say what will be built at the facility, but confirmed it will make vehicles with electric powertrains as well as internal combustion engines.

The Hyundai Motor Manufacturing Middle East (HMMME) facility is a joint venture between the automaker and Saudi Arabia’s Public Investment Fund. The latter will have a 70% stake, while Hyundai controls the remaining 30%.

While Saudi Arabia is an unusual spot for automotive production, their sovereign wealth fund has been enticing automakers to setup shop in the country. The investments are part of a national development project known as Vision 2030, which seeks to diversify the economy. As part of this effort, Saudi Arabia wants to be less reliant on oil production and vehicle manufacturing is part of that.

Audi is broadening its e-tron GT lineup with the introduction of a new entry-level variant, set to launch in Europe. Known simply as the quattro, this new trim takes its place below the more performance-focused S, RS, and RS Performance versions, offering a more accessible option.

Audi had surprisingly little to say about the car, but it features a body color Singleframe grille with a black surround. Customers will also find Matrix LED headlights, a black diffuser, and 20-inch wheels with a black finish. They’re joined by mirror caps that can be had in either black or carbon.

More: 2025 Audi E-Tron GT Is $19,000 Pricier But Much Faster This Year

The interior features a 12.3-inch digital instrument cluster and a 10.1-inch infotainment system. Other niceties include heated sport seats, a heated sport steering wheel, a panoramic glass sunroof, and a ten speaker audio system. Audi also noted there’s a decent amount of storage space including a trunk and frunk with 14.3 cubic feet (405 liters) and 2.7 cubic feet (77 liter), respectively.

Power comes from a 105 kWh (usable: 97 kWh) battery pack, which feeds a dual-motor all-wheel drive system developing 496 hp (370 kW / 503 PS) or 577 hp (430 kW / 585 PS) with Launch Control. This enables the car to rocket from 0-62 mph (0-100 km/h) in as little as four seconds. By comparison, the S e-tron quattro delivers up to 671 hp (500 kW / 680 PS) with Launch Control for a 0-62 run in 3.4 seconds.

Besides being fast, the e-tron GT quattro is 66.1 lbs (30 kg) lighter than the S variant and has a range of up to 387 miles (622 km). When the battery is low, customers will be thankful for the 320 kW DC fast charging capability that can deliver up to 177 miles (285 km) of range in as little as ten minutes.

Audi is now accepting orders, with German pricing starting at €108,900 (around $118,000 at current exchange rates), a notable drop from the previous entry-level S e-tron GT, which started at €126,000 ($141,000). In the United Kingdom, the quattro will arrive in August, priced at £88,555 ($111,000) It will also be offered in a better-equipped Vorsprung variant for £108,055 ($134,000).

Audi’s AUDI, which, ironically, is not an Audi, has always struck us as a bit ridiculous, and that seems to be a theme for the model. Not only does it sport a name that sounds like it was picked by the least imaginative people on Earth, but it also comes with a ridiculously small frunk.

How small? Roughly the size of a shoe box judging by an image that has surfaced on social media. While there’s no immediate word on its dimensions or capacity, opening the hood reveals a large expanse of black plastic. In the center is a small opening, which appears to be carpeted and barely useful.

More: Audi’s AUDI Launches 770 HP Wagon Most Of The World Will Never See

While some frunk is better than no frunk at all, the AUDI E5 Sportback’s compartment is far from impressive. This helps to explain the strong reaction on social media.

🤦‍♂️🤦‍♂️🤦‍♂️🤦‍♂️🤦‍♂️🤦‍♂️🤦‍♂️🤦‍♂️ pic.twitter.com/9z4tnurafd

— 풀백수시고(풀소유) (@newdtfullowning) May 7, 2025

Set to be launched in China this summer, the E5 Sportback is a glorified wagon that lacks a four-ring logo. The model also features a “reinterpretation of the familiar Singleframe” grille with a Light Frame surround. The latter consists of more than 1,000 individual lights and they’re joined by Matrix LED headlights. Other notable highlights include digital side mirrors and frameless doors.

In terms of size, the model measures 192.2 inches (4,881 mm) long, 77.1 inches (1,959 mm) wide, and 58.2 inches (1,478 mm) tall. This means the E5 is 4.3 inches (109 mm) shorter than the redesigned A6.

The company hasn’t said much about the interior, but it’s dominated by a 59-inch pillar-to-pillar display. Two screens showing footage from the digital side mirrors act as bookends and the display-focused setup gives the car a high-tech persona.

The rest of the cabin sports a minimalist design largely devoid of switchgear. However, there’s a 50 watt wireless smartphone charger, a Bose audio system, and an electrochromic sunroof. Buyers will also find an AI assistant, chestnut wood trim, and a fragrance diffuser.

The car rides on the Advanced Digitized Platform and will offer rear- and all-wheel drive. These will have outputs ranging from 295 hp (220 kW / 299 PS) to 776 hp (579 kW / 787 PS). The latter variant will rocket from 0-62 mph (0-100 km/h) in a mere 3.4 seconds.

AUDI has been coy on additional details, but the E5 will be offered with up to a 100 kWh battery pack. This will provide a range of up to 478 miles (770 km). When the battery is low, an ultra-fast charger can deliver 230 miles (370 km) of range in as little as ten minutes.

The E5 Sportback also promises to have advanced driver assistance systems that will make commutes a breeze. Besides the roof-mounted LiDAR sensor, there are three long-range millimeter-wave radars, twelve ultrasonic sensors, eleven cameras, and several multi-modal sensing units.

Lead image X@newdtfullowning

While the VW Group produces many vehicles in the United States, every single Audi sold locally is built in either Europe or Mexico and exported to the US, meaning they are subject to President Trump’s 25 percent auto tariffs. The premium brand is working hard to avoid these tariffs and could build several of its vehicles locally.

A recent report out of Germany suggests that Audi may build the existing Q4 e-tron crossover, or its successor, at the Volkswagen plant in Chattanooga, Tennessee. This would be a logical option as the Q4 e-tron shares the same MEB platform as the VW ID.4, which is currently built in Tennessee.

Read: Audi Stops All US Vehicle Exports Over Tariffs

At the same time, it could alter production plans for the Q8 e-tron. This model was originally going to be built in Mexico, but it may now be manufactured in Columbia, South Carolina, which will be home to Scout and handle production of both the EV and EREV versions of the Terra and Traveler. While VW has been eager to distance itself from Scout to allow the new brand to sell direct-to-consumers, it clearly has enough influence over it to also have the site build an unrelated model from Audi.

According to a report from Automobilwoche, the VW Group is also eyeing a third potential location for building the Q6 e-tron, though details are scarce for now.

When asked about these plans, an Audi spokesperson didn’t exactly confirm anything but did admit that the U.S. market is one of their top priorities, sitting alongside Europe and China as a core pillar of their global strategy.

“We want to increase our presence in the U.S.,” they told Auto News. “We are currently examining various scenarios. We are confident that we will be able to decide on the specific details in consultation with the Group before the end of this year.”

Either way, the wheels are in motion for Audi to make a more significant push in the States, as it’s imperative for the company to do whatever it takes to dodge those tariffs, whether by relocating production, shifting models, or just flexing the power of the VW Group.

Party hats were compulsory headgear at VW’s Zwickau plant in eastern Germany this week. The factory produces six different EVs for various VW Group brands and just built its millionth electric car, an ID.3 GTX hot hatch. But Zwickau’s busy production lines are causing a headache for the bean counters at VW’s Wolfsburg HQ.

The problem is that EVs are expensive to build and deliver smaller margins than equivalent combustion-powered cars. And while electric sales doubling in Europe in the first quarter of 2025 is something to celebrate, some of those sales come at the expense of ICE sales.

Related: VW ID.2 Might Have A Shot In America, But ID.1 Is ‘Highly Unlikely’

As EVs take up a greater proportion of the sales mix – they accounted for one in five VW Group cars in Jan-March – they push profitability down, reducing the margin to 4 percent. And the withdrawal of EV subsidies in many European countries means VW can’t lean on government incentives to allow them to charge more.

But there is light at the end of the tunnel in the form of the VW ID.2 and its various spinoffs and related EVs. The €25k ($28k) ID.2, which will be built in Spain, goes on sale in 2026 and should be one of the first Western-built EVs to return margins close to an ICE car’s. The baby VW and its sister SUV, plus the Cupra Raval and Skoda Epiq use a new front-wheel drive version of the MEB platform that costs less to produce.

Earlier this month VW revealed that earnings before tax were down 40 percent to €3.1 billion ($3.5 bn) in Q1 even as deliveries increased by 1.4 percent. The company’s finance chief Arno Antlitz partly attributes this to EVs taking a bigger slice of the sales pie.

But President Trump’s tariffs threaten to throw an even bigger spanner in the VW Group’s plans. The constantly-changing US import tariff situation is making it harder for automaker to make financial forecasts for the rest of the year, but VW, which is badly exposed due to Audi and Porsche’s lack of US production sites, has already downgraded primed investors to expect a less successful year than previously anticipated.

Audi had a rough 2024, sales sinking by almost 12 percent and down in every single region. But one of the few models that still seemed to grab the public’s attention, at least in America, was the Q4, and an imminent facelift could help keep it bringing in the punters and prevent EV buyers having their heads turned by the newly-revised Tesla Model Y.

These spy shots show a prototype of the updated Q4 e-tron out in the wild for the first time. This one is a Sportback, the coupe-styled variant with the sloping back, though all of the changes seen here will also find their way onto the more upright, more practical regular Q4 e-tron.

Related: Audi Q4 E-Tron Gains Entry-Level Trim With Steel Wheels And Small Battery

Not that there will be an awful lot of changes to spot when the cars debut, potentially later this year. The hood and fenders appear to be identical to the ones on today’s Q4, meaning updates will mostly be limited to the grille, lights and bumpers.

We can see that the DRL design is new and Audi looks to have given its compact electric SUV the same multi-segment DRL tech present on the new A4, A6 e-tron and this car’s big brother, the Q6 e-tron. But the Q4 doesn’t get the Q6’s split headlight arrangement.

The lower grille pattern is also different, all current Q4’s getting horizontal slats rather than a hexagonal mesh at the base of the bumper. But while the rear Audi badge will probably be illuminated, the front is unlikely to be. The brand’s front four-ring logo is too big in its current form to meet rules governing maximum dimensions for illumination, and Audi has so far chosen to leave the logo unlit on its recent cars rather than downsize it.

One other change we can see is what appears to be a bigger ADAS sensor at the top of the windshield, suggesting the facelifted Q4 could get some improved driver-assist tech. But it’s not yet clear what other changes might come to the MEB-platform SUV. In late 2023 Audi updated the Q4 with more power for the single-motor versions (up to 282 hp/286 PS/210 kW) and faster charging speeds (175 kW) for the dual-motor models.

More recently it unveiled an entry-level Q4 35 e-tron for some markets that comes with a 55 kWh battery that can last 221 miles (355 km) between charges.

Photos Baldauf

Everybody loves legroom, but Chinese customers demand it. As a result, automakers offer an assortment of long-wheelbase models in the country. Audi is no exception and they’ve taken the wraps off four new models at the Shanghai Auto Show. They include the A5L, A5L Sportback, Q5L, and A6L e-tron.

Audi A5L

The A5L comes from FAW Audi and it’s 3 inches (77 mm) longer than the standard model. The company didn’t go into many specifics, but said the car offers “far more interior space” as well as a more comfortable rear seat that has thicker padding as well as 28 degrees of recline. Customers will also find an 11.9-inch digital instrument cluster, a 14.5-inch infotainment system, and a standard 10.9-inch front passenger display.

Audi was coy on powertrain details, but said we can expect “ultra-modern combustion engines with 48-volt mild-hybrid technology.” They also noted the car rides on the Premium Platform Combustion and promises to provide “superior performance and high efficiency.”

Audi A5L Sportback

The A5L Sportback is built by SAIC Audi and measures 193 inches (4,903 mm) long. It appears to be largely identical to the A5L, but the company noted it has a nine-zone intelligent panoramic sunroof that can change from clear to opaque in a matter of milliseconds.

It’s joined by a 20-speaker Bang & Olufsen sound system, 12-way power massaging front seats, and an ambient lighting system. The liftback also provides up to 48 cubic feet (1,361 liters) of cargo space.

Power is provided by a hybridized 2.0-liter four-cylinder engine that produces 268 hp (200 kW / 272 PS) and 295 lb-ft (400 Nm) of torque. It’s paired to a seven-speed dual-clutch transmission and a standard all-wheel drive system, which enables the model to accelerate from 0-62 mph (0-100 km/h) in 6.4 seconds.

Audi A6L e-tron

The A6L e-tron comes from FAW Audi and features a wheelbase that has been stretched 5.2 inches (132 mm). This promises the “maximum of comfort and space, especially for the second row of seats.” Customers will also find an assortment of familiar displays as well as an intelligent panoramic sunroof.

The extended wheelbase allowed for the installation of a larger 107 kWh battery pack, which delivers up to 478 miles (770 km) of range. When the battery is low, a 270 kW fast charger can take it from 10-80% in around 20 minutes. Audi didn’t mention performance specs, but the car has an adaptive air suspension and a dual motor all-wheel drive system.

Audi Q5L

Last but not least is the Q5L. It’s 4.9 inches (125 mm) longer than the traditional crossover and this “significantly” increases interior space.

The company also said we can expect a 2.0-liter four-cylinder engine with mild-hybrid technology that delivers on the “promise made by the dynamic and powerful silhouette.”

Audi has officially unveiled its first-ever production model under its new AUDI sub-brand, the E5 Sportback. And no, that’s not a typo; it’s AUDI (all caps, without the four rings) and it’s a new venture entirely, created in partnership with China’s SAIC. This China-exclusive car follows on from last year’s E concept and it designed to fit into a rapidly growing market with some interesting features.

Launched at the Shanghai Auto Show, the all-new five-door wagon is an electric-only offering available in both rear- and all-wheel drive configurations, with a quoted maximum range of 770 km (478 miles). The new car will be available on Chinese forecourts in the summer.

AUDI By Audi, With A Dose Of Chinese Tech

Although it’s similar in size to the A6 Avant, measuring 4,881 mm (192.2 in) x 1,959 mm (77.1 in) x 1,478 mm (58.2 in), the AUDI E5 Sportback is more than just a rebadged e-tron. It’s built on a platform developed through collaboration between Audi and SAIC, with the aim of combining the best from Germany and China.

Read: Audi Launches New AUDI Brand Without Four-Ring Logo In China

On the Continental side, Audi touts design and engineering excellence, while SAIC’s contribution is described as being found in the E5’s digital ecosystem and innovation. “It delivers on our brand promise: the best of both worlds,” says Fermín Soneira, CEO of the new venture.

There’s a lot of talk about carrying forward the Audi DNA, and it’s clear that the German side is doing much of the heavy lifting in the branding department‚ despite claims that there’s a clear differentiation between Audi and AUDI (really?)

A Digital Ecosystem Tailored for China

However, it’s also a tacit admission that Chinese consumers want the kind of advanced technology that is not only commonplace among homegrown brands but also tough for foreign brands to deliver. The backbone of this is the new AUDI OS. The system runs on a Qualcomm Snapdragon 8295 automotive chipset and is displayed on a massive 27-inch 4K screen that spans the entire breadth of the cabin.

It features facial recognition and an app store that is “fully integrated into the digital world of China.” Or, in other words, it’s tailored to China’s unique ecosystem of advanced, homegrown apps, ranging from payment gateways to messaging services.

Of course, there’s also a voice assistant, which TikTok’s parent company, ByteDance, has developed. The focus has been on making the virtual assistant as human-like as possible, with the ability to change its “demeanor” using something called Behavior Select.

Localized Self-Driving Tech

Another significant yardstick by which premium cars sold in China are judged is their autonomous driving capabilities. The AUDI E5 Sportback features a suite of LiDAR sensors, which have been specifically trained for the unique challenges of urban roads in China. For instance, the system can supposedly detect tricycles and two-wheeled delivery riders.

The AUDI also features a parking assistant that can memorize paths across multi-story car parks and navigate to a specific spot before parking itself — a nifty feature for those living in the concrete jungles of China.

What’s Under The Hood

The tech specs and options of the AUDI E5 Sportback bear several similarities to entries we’ve already seen in Audi’s lineup. It features 800-volt charging architecture that can get you 370 km in just 10 minutes, similar to that found on the Premium Platform Electric (PPE) that underpins the A6 e-tron and Q6 e-tron.

Although the exact technical specifications of each mode are yet been released, we know that the E5 Sportback will be available in four variants. Available in both rear- and all-wheel drive, customers will be offered outputs of 220 kW (295 HP / 299 PS), 300 kW (402 HP / 407 PS), 425 kW (570 HP / 578 PS) or the range-topping 579 kW (776 HP / 787 PS) — that’s Audi e-tron GT territory.

The top-spec E5 will get to 62 mph (100 km/h) in as little as 3.4 seconds. The largest battery on offer will be 100 kWh, with a maximum driving range quoted as 770 km (478 miles) on the CLTC test cycle. The E5 will ride on air suspension and will also have the option of all-wheel steering.

The E5 Sportback will go on sale in Summer 2025, and will serve as the cornerstone of the AUDI brand. Expect two more AUDI models to be revealed in 2026 and 2027.

Saudi Aramco, the world’s largest oil producer and fourth-largest company by revenue, knows that the days of relying solely on oil are numbered. In a bid to future-proof itself, the company has entered into a partnership with BYD, the world’s second-largest manufacturer of electric vehicles, to collaborate on new energy vehicle technologies.

A Joint Development Agreement was signed by Saudi Aramco Technology Company and BYD this week. It “aims to foster the development and innovative technologies that enhance efficiency and environmental performance” as they are seeking “new energy vehicle breakthroughs.”

Read: This Tiny Engine Turns EVs Into Gas Hybrids

Limited details have been announced about the partnership, but it could have far-reaching effects across the automotive industry. As two titans of their respective industries, Aramco and BYD have huge amounts of power and can set trends and redefine markets that their competitors will have to follow.

Aramco says it is working to optimize transport efficiency, exploring advanced powertrain concepts and working on lower-carbon fuels. The Saudi giant believes that “multiple approaches” are needed for a practical energy transition.

“At the crossroads of technological innovation and environmental protection, BYD always believes that true breakthroughs come from openness and collaboration,” the company’s senior vice president, Luo Hongbin, said according to a Business Inquire report.

“We expect that SATC and our cutting-edge R&D capabilities in new energy vehicles will break the boundaries of geography and mindset to incubate solutions that combine highly-efficient performance with a lower carbon footprint. We are confident that this will support the world’s efforts to address the climate challenge.”

BYD no longer sells any consumer vehicles without a plug. Last year, it sold 4.27 million new energy vehicles. Of these, roughly 1.7 million were BEVs, while the remaining 2.48 million were PHEVs.

More: BYD’s Concepts Are All About Gold, Dragons, And Video Games

In China, the term new energy vehicles refers to those that are powered in part or primarily with electricity and alternative fuels. They include plug-in hybrids, battery electric vehicles, and fuel-cell EVs. Aramco will logically be eager to grow the reach of BYD‘s plug-in hybrid models, which retain an internal combustion engine running on gasoline.

This partnership with BYD isn’t the only move Aramco is making in the automotive industry. The Saudi juggernaut also owns a stake in Horse Powertrain, the partnership between Renault and Geely that aims to develop and produce innovative new combustion engines. Earlier this week, Horse unveiled a hybrid powertrain concept that can add a small combustion engine to existing electric vehicle platforms.

Tesla’s sales sank alarmingly in Q1, falling 13 percent to 337,000, a fact that on its own would be enough to make Volkswagen’s German execs crack a wry smile. But what they’ll really have them bro-hugging in Wolfsburg is knowing that Tesla’s misfortune is almost certainly linked to VW posting record EV sales figures over the same period.

Related: Tesla’s European Sales Have Collapsed, Down 45% As EV Market Surges 31%

Sales of fully-electric VW Group vehicles jumped 59 percent in the first three months of the year, reaching 216,800 compared with 136,400 in Q1 2024. By comparison, Tesla reported 336,681 deliveries in the same period, down 13 percent from last year. But even that success is dwarfed by what happened in Europe.

EV Momentum in Europe

EV sales there exploded by 113 percent to 158,100, up from just 74,400 a year earlier, no doubt helped by widespread dislike of Tesla CEO Elon Musk, particularly in Germany, where Musk came out in support of the far-right AfD party. A poll last month found 94 percent of Germans wouldn’t buy a Tesla due to the CEO’s antics. That sentiment appears to be hitting where it hurts: in Q1, Tesla’s sales in Germany plummeted 62 percent compared to the same period last year.

Strong Gains in the US, Trouble in China

US sales also grew significantly, Americans taking home 19,900 EVs, representing a 51 percent increase. But there was bad news from China where EV sales plummeted 37 percent to 25,900 units. And although the global EV sales result is definitely worth celebrating, it ought to be viewed in the context of the sales of vehicles of all power types.

VW GROUP EV SALES

That number did improve, but only by 1.4 percent to 2.13 million units, the decline in demand for combustion cars offset by both the surge in demand for EVs and a 15 percent uptick in PHEV sales. Overall sales in China were down 7 percent, the only region to see a fall.

VW’s Top-Selling EVs

VW’s best-selling EV globally was the ID.4/ID.5, which racked up 43,700 sales, followed by the ID.3 hatch with 28,100 deliveries. Audi’s Q4 e-tron – a reskinned ID.4 – placed third with 22,800 sales, the Skoda Enyaq found 20,200 buyers and VW’s ID.7 scored 19,100 sales.

Porsche’s Macan Electric only ranked seventh with 14,200 sales but since it wasn’t on sale in Q1 2024 its appearance in this year’s Q1 helped Porsche’s EV deliveries jump by 326 percent.

EV SALES BY BRAND

Tesla is facing a number of headwinds as the company has to deal with an onslaught of Chinese competitors as well as customers who are fed up with Elon Musk. The combination has resulted in attacks in the United States as well as plummeting sales in Europe.

Amid that background, Tesla is eyeing new markets to improve its fortunes. The latest is Saudi Arabia as the company has sent out RSVPs for their opening in Riyadh.

More: Tesla Cybertruck Joins Dubai Police, Looks Terrible In White

The event takes place on April 10 and guests are invited to explore the company’s lineup and “step into a world powered by solar energy, sustained by batteries, and driven by electric vehicles.” The Cybercab and Optimus robot will apparently be in attendance, and Tesla noted employees will be on hand to answer questions about ownership, home charging, and more.  

While Tesla is a newcomer to Saudi Arabia, the company already has a presence in the Middle East. In particular, there are stores and superchargers in Israel, Jordan, Qatar, and the United Arab Emirates.

Tesla’s entrance into the market is interesting to note as Saudi Arabia’s Public Investment Fund has poured billions into Lucid. Part of this helped to fund a plant in the country, which has begun semi knocked-down assembly of the Air. However, it’s slated to become a fully fledged production facility “after the middle of the decade.”

That isn’t the only thing making the situation awkward as Reuters noted Musk was originally banking on Saudi money to take Tesla private. This led to his infamous “funding secured” tweet, which turned out to be nonsense.

The publication also noted EVs only account for 1% of sales in the oil-rich country. This suggests Tesla’s sales problems are far from over.

Audi might have decided to keep ICE alive for longer than initially expected, but that won’t affect the planned rollout of new EVs. One of them will be an entry-level model similar to the ICE-powered Audi A3, which is expected to debut next year.

The news were shared by Audi CEO Gernot Döllner during an interview with the German newspaper Süddeutsche Zeitung. Döllner described the upcoming model as “an electric vehicle in the same class as the A3”. He also revealed that the EV will be produced in Ingolstadt, starting in 2026.

More: 2025 Audi A3 TFSI e PHEV Has Up To 268 HP And 89 Miles Of Electric Range

The current generation of the Audi A3 was introduced in 2020 based on the MQB architecture and received a mid-lifecycle update in 2024. This means that the (as yet unnamed) EV that could adopt the A2 E-tron or A3 E-tron moniker will be a standalone offering that’ll be sold alongside the A3 rather than replacing it.

The timing of the launch of the compact-sized Audi makes us believe it will ride on the existing MEB architecture, which is already used by the Audi Q4 e-tron and the entire VW ID family. The new EV-dedicated SSP platform is expected to arrive in 2028 or 2029, underpinning the VW Golf Mk9 and future electric iterations of the VW T-Roc, Skoda Octavia, and Cupra Leon.

Chances are that the new Audi will adopt a five-door hatchback bodystyle which is more popular in Europe than four-door sedans. Of course, no one can rule out the possibility of a small crossover, similar to the A3 AllStreet. In any case, the EV will likely inherit the latest styling language of the Ingolstadt brand, combined with high-tech features in the cabin and competitive range figures.

More: VW ID.2 Might Have A Shot In America, But ID.1 Is ‘Highly Unlikely’

The entry-level EV could be Audi’s version of the upcoming VW ID.2 that’s also expected to arrive in production form in 2026. If this turns out to be the case, its pricing will be higher than the sub-€25k VW, in line with the more premium market positioning of the Audi brand within the VW Group.

Besides the upcoming A3-sized EV, Audi’s CEO has also revealed that the company will introduce a new model in China this April, which is being developed locally with the help of SAIC.

The German brand is currently going through a tough period due to weaker than expected EV adoption, tough competition, and political uncertainty. It recently announced plans of eliminating 7,500 jobs in Germany by 2029 in a “socially responsible” manner.

Not long after reports surfaced that the Audi R8 could return as a plug-in hybrid supercar powered by the same engine as the Lamborghini Temerario, it’s now emerged that the TT might also make a comeback. However, while the future R8 is expected to retain a traditional combustion engine, the next-generation TT will likely go fully electric. It could even become Audi’s affordable alternative to the Porsche Boxster and Cayman EVs.

More: Audi Will Keep Combustion Engines Alive Beyond 2032

Audi, like many Western automakers, is leaning heavily on its rich heritage. The original TT remains a key source of inspiration for the company’s new chief creative officer, Massimo Frascella. When asked about the possibility of resurrecting the ‘TT’ name, Audi CEO Gernot Döllner told Auto Express that it’s “thinkable,” adding, “but we have a broad view on what’s possible.”

New Sports Cars on the Horizon

Döllner confirmed that new sports cars are indeed part of Audi’s future plans. “I believe Audi should have a sports car, for sure,” he said. “That’s part of the brand DNA, and we have to find the right way, timing-wise, to integrate it into our portfolio.”

While the carmaker’s CEO didn’t confirm whether the TT would return as an EV, he did mention that an electric sports car for everyday driving would align with the brand. However, he pointed out that track-focused performance models will likely remain combustion-powered—for now.

“If you’re talking about real racing cars for the track, to me the only way until now is combustion engine or hybrid,” he noted. “But if it’s more for everyday use on normal roads, I would definitely see a transition to the electric era. Long term there will be a place for fully electric sports cars, not for the track but for crossing the Alps or having fun on a country road.”

Read: The Final Audi TT Has Rolled Off The Production Line

If Audi does indeed decide to bring back the TT and launch it as an EV, it’s likely that many of the components being developed for Porsche’s all-electric Cayman and Boxster could be shared. However, Porsche is apparently encountering issues in ensuring its electric sports cars live up to the legendary status of their ICE predecessors.

Still, if any brand can pull off a compelling electric sports car, it’s Porsche—and Audi would be wise to tap into that expertise.

Not long ago, premium German cars were seen as the epitome of luxury in China. For brands like Mercedes-Benz and Porsche, China was consistently their largest market, with sales surpassing those in any other country. However, as new homegrown brands have emerged, local preferences are beginning to shift toward Chinese companies and their offerings. Xiaomi is a perfect example of this shift.

Xiaomi, primarily known for being one China’s largest makers of electronics and consumer goods, producing everything from vacuum cleaners to computer monitors, fridges, suitcases, and smartphones. Then, the brand’s boss decided he wanted to build an electric vehicle. Unlike the billionaire founder of Dyson, who famously failed to launch an EV, Xiaomi has succeeded where others couldn’t, with its first electric vehicle, the SU7.

Read: Why Xiaomi Succeeded In Becoming An Automaker While Apple Failed

Customer deliveries of the SU7 started less than a year ago, and the company already has its sights set on the German establishment. The company aims to sell 350,000 EVs in China this year, thanks to the SU7 and the upcoming release of its Tesla Model Y competitor, the YU7. If Xiaomi can hit this target, it would surpass the combined EV sales of Volkswagen, Audi, BMW, Mercedes-Benz, and Porsche in China from last year, Handelsblatt reports.

Expanding Beyond China

It’s not just at home in China, where Xiaomi wants to grow its EV business. Earlier this month, the company’s president William Lu, revealed plans to expand into more markets. While he didn’t specify exact dates, he assured that Xiaomi would enter new regions “within the next few years.”

The arrival of the YU7 will mark a pivotal moment for the company. SUVs continue to dominate global sales, and there’s a strong chance the YU7 will outperform the SU7. Deliveries are set to begin in June or July, and the industry will be watching closely to see if Xiaomi can continue its rise.

It’s becoming increasingly clear that the automotive industry’s “electric only” dream is a work in progress. Audi, the latest brand to rethink its approach to a purely EV future, has announced that it will keep offering combustion engine models for longer than initially planned, as the market isn’t quite ready for a world of only battery-powered vehicles just yet.

More: Audi Slashing Thousands Of Jobs In Germany

During Audi’s Annual Media Conference for 2025, CEO Gernot Döllner had this to say: “As part of our product initiative, we are not only launching new electric models, but also a new generation of combustion engine vehicles and plug-in hybrids. We will manage the production of our last combustion engine vehicles depending on various developments in world markets.”

New Plans, Same Old Combustion Engines

Audi had previously said that the next-generation Q7 would be its last combustion engine model, coinciding with the end of ICE development in 2026. The plan was to keep these vehicles on the market until around 2032, at which point Audi would go fully electric. But now, Döllner has thrown a wrench into that timeline.

Following the example of competitors like BMW, Mercedes, and Volvo, Audi will delay its shift to a purely electric lineup. This move makes sense, especially when you consider that Porsche is still planning to churn out ICE models well into the 2030s.

PHEVs Are Here to Stay, For Now

At the same conference, Döllner also teased upcoming model launches for 2025: “We are in the process of rejuvenating our entire model range, and by the end of the year we will have the youngest portfolio in our market segments.”

Döllner confirmed that the new generation of the Q3 will arrive this summer, following the recent launch of the new A6 in Avant form. He also announced that a plug-in hybrid version of the A5 will debut on March 25 as one of the 10 new PHEVs set to be introduced this year. He described PHEVs as “a central part of our portfolio as we move towards an all-electric range,” suggesting that Audi will place greater emphasis on these types of powertrains.

More: Audi Wants To Climb The Luxury Ladder Without Stepping On Bentley’s Toes

In North America, Audi will launch 10 new models by the end of 2025 and is “currently assessing various scenarios for additional localization” as a way of dealing with the US administration’s new tariffs. As for the Chinese market, it has “further intensified” its product strategy with FAW and SAIC, hoping to “participate in the growth of the electric car market” as its execs believe they are already a “strong player in the combustion engine business”.

Of course, Audi isn’t delusional about the challenges ahead. CFO Jürgen Rittersberger described 2025 as a “very challenging year” for the brand, citing the “tense geopolitical and economic situation” of 2024. Still, he believes in the prospects of their renewed portfolio, as new models are now “successively reaching the markets”.

Audi and their works council have reached an agreement that aims to reduce labor costs and increase flexibility at German production sites. The automaker also said they’re extending a “job protection plan until the end of 2033.”

The company didn’t go into many specifics, but noted economic conditions are becoming “increasingly tougher,” while they’re also forced to deal with “political uncertainties” and new competition. This is a perfect storm of bad news and it’s being complicated by slower than expected electric vehicle adoption.

More: VW Confirms More Than 35,000 Job Cuts In Germany, Golf Production Moving To Mexico

Unfortunately, this means cuts but they won’t be as deep as the ones at Volkswagen. However, Audi is still planning on a “socially responsible reduction” of up to 7,500 jobs by 2029.

Aside from eliminating employees, Audi aims to reduce bureaucracy and put a renewed focus on their product portfolio. The latter has become a problem as important models, such as the Q7, have grown stale.

Audi will also “reduce personnel costs by adjusting payments above the collective wage agreement and variable payments for pay-scale employees.” The automaker didn’t spell things out, but it sounds like managers and the Board of Management will be taking a pay cut. The automaker also mentioned a retooled profit sharing program to help “future-proof” the company.

As for the so-called job protection plan, Audi will invest around €8 ($8.7 / £6.7) billion into Germany through 2029. In Ingolstadt, this will pave the way for a new entry-level EV as well as production of the redesigned Q3, which will also be built in Győr, Hungary.

Audi was tight-lipped about plans for Neckarsulm, but hinted the “electronic architecture of combustion-engine vehicles will be developed further, significantly increasing their competitiveness.” The company also said they’re examining the possibility of building an “additional model” at the plant.

Rainer Schirmer, Vice Chairman of the General Works Council, said “We were able to future-proof both sites. For Neckarsulm, this means, among other things, that we were able to secure a ‘future fund’ for plant development, which we can use to set up new production platforms – for future electric models. To this end, Neckarsulm is to be expanded as an AI and digitalization center for the entire Audi Group.”

Audi CEO Gernot Döllner said the deal was a “strong agreement for the future of the company” and one that will strengthen their competitiveness. However, he noted “Audi must become faster, more agile, and more efficient” and this “cannot be done without personnel adjustments.”

Despite confirming the needs for cuts, Döllner said there would be “no layoffs due to operational reasons until the end of 2033. In these difficult economic times, this is good news for all employees.”

While Audi didn’t go into detail, Handelsblatt is reporting the company aims to save around €1 ($1.1 / £0.8) billion annually at their German sites. They also noted the Neckarsulm plant will build “large electric sedans,” while Ingolstadt could make the A3 – presumably in electric form judging by Audi’s statement.

Speaking of production, Audi has a Trump problem as they don’t have any plants in the United States. If the trade war worsens, the four-ring brand might set up shop at Volkswagen’s Chattanooga plant.

Audi also appears to have abandoned plans to go electric-only. This is a major change as, less than a year ago, they were adamant “we will transform our product portfolio and switch completely to electric vehicles. Our customers will experience the last major world premieres of new model lines with conventional drive systems in the course of 2026.” While the automaker didn’t exactly admit defeat, they acknowledged the continued development of ICE-powered vehicles.

It’s been almost eight months since the 2025 Audi A6 e-tron was unveiled in Europe, and now we get to find out the range and pricing details for the US market. Going head-to-head with the BMW i5 and Mercedes-Benz EQE, the new A6 e-tron will be sold exclusively in Sportback guise, meaning the Avant version will remain forbidden fruit.

Sitting at the base of the range is the Audi A6 Sportback e-tron, starting from $65,900 for the Premium trim level, excluding a $1,295 destination and delivery fee. The base model is also available in Premium Plus ($69,800), and Prestige ($72,200) guises. Upgrades enjoyed by the Premium Plus and Prestige models include LED headlights with digital DRLs and interior ambient lighting. The Prestige also adds eight different light signatures and adaptive air suspension.

Read: 5 Things You Need To Know About The New Audi A6 Avant

Driving the base version is a 100 kWh (94.4 kWh net) battery driving a single electric motor at the rear with 375 hp. The cheapest i5 in the US is the eDrive40 model, punching out 335 hp and starting at $67,100. The Mercedes-Benz EQE is substantially pricier, starting at $74,900 for the EQE 350+ Sedan with just 288 hp.

The A6 Sportback e-tron range also includes the standard Quattro model. This model has the same battery pack, but features two electric motors, combining to pump out 456 hp. Prices start at $67,900 for the Premium, $71,800 for the Premium Plus, and $74,200 for the Prestige. The closest comparable i5 is the xDrive40, but it makes do with only 389 hp and starts at $70,100. Prices for the EQE 500 4Matic with its 402 hp start at $85,900.

Sitting at the top of the range is the Audi S6 Sportback e-tron. It delivers an impressive 543 hp and is available from $78,700 for the Premium, $82,200 for the Premium Plus, and $84,600 for the Prestige. All S6 versions come with sport adaptive air suspension and Prestige models include digital OLED taillights not found elsewhere in the range.

The base A6 Sportback e-tron has a quoted range of 392 miles (631 km) while the Quattro version with its added performance offers 377 miles (607 km) of range when fitted with the ultra package, which includes 19-inch wheels and all-season tires. The S6 Sportback e-tron has a quoted range of 324 miles (521 km). All models have an 800-volt system and support charging speeds of up to 270 kW, meaning the battery can be topped up from 10-80% in 21 minutes.

In the ever-evolving world of advertising, where companies are constantly trying to outdo each other with the next big thing, Volvo has thrown a curveball in Saudi Arabia for a couple of reasons. First, it doesn’t actually feature a Volvo—or a car of any kind. Before anyone jumps to conclusions and assumes this is a rehash of what Jaguar recently did, hear this: the entire ad is a creation of artificial intelligence. It might even offer a glimpse into what we can expect from future brand campaigns.

Titled “Come Back Stronger,” the video ad is a surreal mix of vague, almost abstract clips. There are close-up shots of people, individuals running in the desert, and other scenes that seem completely unrelated to anything Volvo specifically does. What does tie it all together is the voiceover, which, to be fair, sounds like a car commercial—even if the visuals don’t match.

Read: Even Jaguar’s Designers Weren’t Convinced By Controversial Rebranding, Leaked Letter Claims

Here’s the script:

“They say some dreams are too ambitious but we’ve never believed in limits. Challenges didn’t hold us back, they pushed us forward. Every obstacle, every doubt, shaped us into something stronger because progress isn’t about the past, it’s about what’s possible. And what’s possible is everything. This isn’t just a return, it’s a comeback, and together, we vow to always come back stronger.”

So, what does all that mean when it comes to practical application? Volvo is hoping to sell more cars in Saudi Arabia with its new electrified lineup. That’s the long and the short of the entire ad campaign. Once again, Volvo greenlit this with zero cars in the video.

It’s unclear whether Volvo intentionally chose to leave cars out or if it simply had too much trouble getting the AI to generate a truly accurate Volvo model. According to Adweek, Osama Saddiq, the founder of Lion—the agency behind the ad—said, “This was a tough decision… to tell a deeply human story through the voices of Saudi locals… showing the car would have distracted from the narrative.”

Regardless of intention or execution, it’s clear that AI could soon become a powerful tool in the automotive world. Even Mercedes’ head of design has warned that AI might make designers obsolete within the next decade.

Behind-the-scenes storyboards from Lion show just how the company did the work. In addition, it said that by using AI it cut production time from months down to weeks. For many brands, that alone could be enough of an incentive to start experimenting with AI more frequently in the near future.

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Soon after Costco’s Auto Program introduced a slew of discounts for several GM models, new savings were announced for new Audi models. The discounts will be available from March 4 through April 30 and unlike the GM deal that was mainly limited to EVs, the savings are available for both ICE and EV models.

If you’re a member of Costco, the retailer’s Auto Program aims to make the car buying experience easier as it does all the price haggling with dealerships. To benefit from the Audi discounts, all shoppers need to do is select the model they’d like and register for a savings certificate that can be presented at any Audi dealership in the US.

Read: Costco Now Offers EV And Hybrid Discounts, Including The Corvette E-Ray

The Audi A3, Q3, Q4 e-tron, and Q4 Sportback e-tron are all available with a $1,000 discount, while numerous other Audi models are available with a $2,000 saving. These include the A5 Sportback, S5 Sportback, A6 Sedan, A6 Allroad, S6, A7 Sedan, S7, A8, S8, Q5, Q5 Sportback, SQ5, SQ5 Sportback, Q7, SQ7, Q8, SQ8, Q6 e-tron, SQ6 e-tron, Q8 e-tron, Q8 Sportback e-tron, SQ8 e-tron, SQ8 Sportback e-tron, e-tron GT, S e-tron GT, and RS e-tron GT.

These incentives can be paired with any other incentives currently offered by Audi or individual dealerships. There’s plenty of demand for new Audi models from Costco memberships, which may come as a bit of a surprise. The retailer says the Audi A5, A8, A6, Q5, and Q4 e-tron were the most popular among its members in their respective segments last year.

“If a member is looking for a new luxury sedan, SUV or electric vehicle, the Audi Limited-Time Special is a great place to start,” Costco Auto Program general manager Cory Benwell said. “Audi is very popular among the Costco members who use our program and we’re helping them get into the vehicle they want at an exclusive value.”