Audi Q2 to be axed! BMW X2, Mini Countryman SUV rival to be discontinued as Audi heads further upmarket

If you’re after an affordable model from a premium brand, then you’d better get in quick.

Because soon there will be two fewer options.

According to a report in German publication Handelsblatt, Audi has confirmed that it will drop another one of its cheapest model lines after its current generation.

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The Q2 small crossover will be discontinued and not get a second generation. It follows confirmation last year that the Volkswagen Group-owned brand would not develop a third-generation A1 light hatch and that the current model would be the last.

Audi CEO Markus Duesmann made the announcement about the Q2 in an interview with the publication.

“We have decided not to build the A1 anymore, and there will be no successor model from the Q2 either. We have also realigned Audi as a premium brand. We will limit our model range at the bottom and expand it at the top,” he said.

Given the second-generation A1 only went on sale in 2019, it will still have a few years to run before production ends. It is unclear when production of the Q2 will end.

An Audi Australia spokesperson said both models will continue to be available to Australian buyers "for several years to come".

That means when the Q2 and A1 eventually disappear, the most affordable Audi model will be the A3 small hatch and sedan line.

The new-generation A3 is about to go on sale in Australia priced from $46,300 before on-road costs for the entry grade 35 TFSI Sportback.

That is close to $3000 more than the base Q2 35 TFSI which starts from $43,600. A facelifted version of the Q2 went on sale in 2021 and the range now includes the spicy SQ2 that uses the same 2.0-litre turbocharged petrol engine from the VW Golf R and is priced at $65,300.

Audi announced last year that the current generation of the A1 would be the last.

The most affordable SUV in Audi’s Australian line-up will be the Q3 35 TFSI from $48,300.

The Q2 competes with the likes of the BMW X2, Mini Countryman, Lexus UX and more.

Orders opened for the Q2 in late 2016 before deliveries started in early 2017. It was designed to fill a gap under the Q3 which grew in size for its second generation.

Sales hit a high of 2155 in 2019, dropping to 1284 in 2021. Audi still dominated the premium small-SUV class last year, with Q2 and Q3 sales combined reaching 5374 units.

The A1 Sportback is the most affordable Audi right now at $33,200 for the 30 TFSI, while the 40 TFSI S line is $47,200.

Audi announced the end of the A1 last year, blaming the cost of developing powertrains for smaller vehicles under tough new EU emissions regulations.

Audi has previously announced that it will launch its last internal combustion engine models in 2026 before shifting to electric-only models by the early 2030s.

The A1 is based on the same underpinnings as the Volkswagen Polo and Skoda Fabia and is a direct rival to the Mini three- and five-door hatch.