Audi To Remain In The Compact Segment With Next-Gen A3

Audi has previously confirmed it will discontinue both the A1 supermini and the Q2 small SUV in a quest to move upmarket, but the company says it remains committed to the compact segment where it will be offering a range of models alongside the next-generation A3.

Following the news about the discontinuation of the Q2 earlier this year, Markus Duesmann, Audi’s CEO, said: “The A3 or its successor, that will probably be the entry level. So yes I can commit that from the A3 segment, we will be offering a range of models”. 

The current fourth-gen Audi A3 was unveiled in 2020, which means it will be staying with us for many years ahead. In fact, the first generation of the A3 had a lifecycle of 7 years (1996-2003), the second stuck around for 9 years (2003-2012), while the third remained in production for 8 years (2012-2020) which means that a facelift would keep the fourth-generation model on sale at least until 2027. 

The last new Audi with an internal combustion engine will debut in 2026, so the next A3 will most likely come in EV-only form. As reported by Drive.com.au, citing Audi executives, production of the next A3 could start as late as 2029. The new model will likely sit on the new Scalable Systems Platform (SSP) which will eventually replace the MEB and PPE architectures within the VW Group. 

Currently, Audi’s compact range comprises the A3 Sportback, A3 Sedan, Q3 SUV, and Q3 Sportback coupe-SUV, while an A3 Allstreet is coming soon. We expect future compact EV models to be offered in similar bodystyle variants. Unlike the A3 range, which will go EV-only in the next generation, the Q3 still has some ICE-powered future to it, as with the hybrid-only Cupra Terramar sibling.

Premium automakers have a tendency to abandon small segments due to very small profit margins. The future of BMW compact models in the electric era is still undecided, while Mercedes-Benz has confirmed it will reduce its compact model range from seven to four body styles. Still, the premium compact hatchback segment has a future, with Stellantis plotting the Lancia Delta EV for a 2028 debut. 

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