Audi's compact SUV Q2, which was set to launch domestically this year, will be discontinued without a successor.

This decision comes as part of measures to enhance profitability amid the shift towards electrification, leading to the same fate for the small hatchback A1.

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The Audi Q2 is an entry-level SUV.

It launched in 2016 and underwent a facelift about four years later. Additionally, Audi plans to release its last new car with an internal combustion engine in 2026.

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On the 10th, Markus Duesmann, CEO of Audi, stated through Hansblätter in Germany, "Audi is redefining its brand positioning for the electrification era.

To enhance profitability, we will reduce the number of small car models and expand our premium lineup," adding, "There will be no successors for the Q2 and A1."

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Last year, Audi officially announced the discontinuation of the small hatchback A1. The company plans to implement a premium new car strategy to reduce costs associated with electric vehicle development and increase profit margins per unit.

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With an average price exceeding 100 million KRW (approximately $75,000 USD), Audi plans to expand its e-tron lineup while following the same strategy as its group counterparts Porsche and Bentley—reducing sales volume while maximizing profits.

This approach aims to improve inventory management, production efficiency, quality enhancement, and focus on development personnel, according to industry insiders.

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However, there are concerns that the news of the Q2's discontinuation will impact sales in the domestic market.

Last year, Audi officially confirmed the Q2's domestic launch at the 2021 Seoul Mobility Show, promising success in the domestic imported compact SUV market with its body length extended by 17 mm compared to the previous generation and enhanced design details for greater practicality.

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Notably, the Q2 introduced in Korea was set to feature a fuel-efficient 2.0L diesel engine, boasting impressive performance and high efficiency.

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Industry insiders noted, "The confirmation of discontinuation doesn't mean the product will disappear immediately. The Q2, which has a domestic sales forecast, has not been on the market for even two years since the facelift was unveiled in Europe, so it will continue to be sold globally for the next few years."

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Meanwhile, the Q2 introduced in Korea will launch in a single trim, the 35 TDI, featuring a 2.0L diesel engine paired with a 7-speed dual-clutch S tronic transmission.

It will offer a respectable output of 150 horsepower and a maximum torque of 36.7 kgf·m, along with the Volkswagen Group's latest twin-dosing system to meet emission regulations.

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Additionally, the Q2 will be equipped with LED headlights, a 12.3-inch digital cluster, the latest infotainment system, and advanced driver assistance systems (ADAS), allowing it to compete in the premium compact SUV market.