Audi has ceased production of the A1 and Q2
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Audi has ceased production of the A1 and Q2
- Audi A1:
• The Audi brand (a premium subsidiary of the Volkswagen Group) has announced that it has ceased production of its compact hatchback, the Audi A1 (B-segment). The model had been on the market since 2018 and was manufactured at the Martorell plant in Spain.
• Sales remained strong, averaging 6,000 units per month since January of this year. However, the facility must make room for the upcoming small electric vehicles—the Cupra Raval and the Volkswagen ID Polo—while continuing to produce the Seat Arona, Seat Ibiza, and the Seat/Cupra Leon.
• The Audi A1, which served as the entry-level model in the brand’s lineup, saw a total production run of 1.48 million units across two generations.
- Audi Q2:
• Audi has also announced the end of production for its compact SUV, the Q2 (B-segment). On the market since 2016 and manufactured at the Ingolstadt plant in Germany, the model reached a total production volume of nearly 800,000 units.
• Sales remained solid, averaging 5,000 units per month since January. The plant, however, needs to clear space for the new Audi A2 e-tron, which will now serve as the brand’s entry-level offering—though at a significantly higher price point than the Audi Q2.
• The Ingolstadt plant will continue to manufacture the Audi A3, Audi A6 e-tron, and Audi Q6 e-tron, and will also produce the future Audi A2 e-tron. The site appears to be increasingly focused on electric vehicles. Nevertheless, it is understood that Audi is considering shifting some production of the combustion-engine Audi Q3 from its plant in Győr, Hungary, to the Ingolstadt facility in Germany.
VW Group’s BEV sales in Europe see strong growth in the first half of 2026
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VW Group’s BEV sales in Europe see strong growth in the first half of 2026
- In Europe,
• Volkswagen Group’s battery electric vehicle (BEV) sales in the first half of 2026 reached 360,000 units—an increase of 7.1% compared to the first half of 2025—allowing the manufacturer to maintain its position as the leader in the BEV segment within the region.
• BEV sales in Europe accounted for 19.5% of the Group’s total European sales for the first half of 2026, a figure falling short of its initial targets (which ranged between 20% and 25%). However, the manufacturer emphasizes that its four new B-segment BEVs, designed specifically for the European market, have already garnered 54,000 unfilled orders, and that the second half of 2026 is expected to show significantly stronger BEV sales than the first half.
- Globally (excluding Europe),
• Volkswagen Group’s BEV sales outside of Europe totalled 438,500 units in the first half of 2026.
• This represents a 5.8% decline compared to the first half of 2025, driven by sharp drops in the United States (-68.8%) and China (-47.9%)—the world’s two largest markets.
• These steep declines stem from different causes: in the United States, the discontinuation of BEV subsidies, and in China, intensified competition, primarily from domestic Chinese manufacturers. Consequently, the German automaker’s BEV sales in the U.S. and China have become negligible, as Volkswagen has opted to discontinue several of its models in these markets. Furthermore, it should be noted that the launch of the VW ID Polo, VW ID Cross, Skoda Epiq, and Cupra Raval will have no impact on the Group’s BEV sales in these two regions, as these four B-segment models will not be sold in either the U.S. or China.
Inovev forecasts 180,000 units of the new Mercedes GLA in 2030
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Inovev forecasts 180,000 units of the new Mercedes GLA in 2030
Mercedes has begun European production of its new GLA and electric C-Class models.
1. New GLA
- This is an all-new model that replaces both the previous GLA and the electric EQA. It is a C-segment SUV, competing with the Audi Q3 (combustion engine) and Q4 (electric), the BMW X1 (combustion engine) and iX1 (electric), as well as the Volvo XC40 (combustion engine) and EX40 (electric).
- Like its predecessor, it is manufactured at the Rastatt plant in Germany, alongside the recent CLA, which shares the same platform (MMA). Like the CLA, the new GLA is available as a 48V mild-hybrid (MHEV) based on a 1.5-liter engine, as well as in a fully electric (BEV) version. For the electric variant, there is a choice of two batteries: a 58 kWh LFP battery paired with a 221 hp electric motor, and an 85 kWh NMC battery paired with a 276 hp electric motor. An all-wheel-drive (4x4) version rounds out the lineup, featuring two electric motors with a combined output of 349 hp. The 276 hp version offers a WLTP-rated range of 657 km.
- It measures 4.57 meters in length—16 cm longer than the previous model and 11 cm longer than the EQA.
- Inovev forecasts production of 145,000 units in Germany in 2027, 160,000 in 2028, and 180,000 in 2030.
2. New Electric C-Class
- Previously featured in an earlier edition of *Auto Analysis*.
- Production began in July 2026 at the Hungarian plant in Kecskemét—alongside the CLA and GLB (the CLA is produced at two locations)—rather than at the German plant in Bremen, alongside the combustion-engine and mild-hybrid C-Class, as one might have expected.
Xpeng might produce its cars in Europe at Volkswagen facilities
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Xpeng might produce its cars in Europe at Volkswagen facilities
- The Volkswagen Group has announced plans to reduce its global production capacity by one million vehicles per year—lowering it from 10 million to 9 million units annually—a figure roughly equivalent to the manufacturer’s total global sales volume in 2025. This suggests that the Volkswagen Group no longer holds much confidence in a global sales rebound for 2026 and the years that follow; it appears the automaker anticipates a decline in sales over the coming years, particularly in the Chinese market. Indeed, the Group’s sales in China fell by 30.9% in the first half of 2026—a sharper drop than the 18.9% decline seen in the first quarter. The downturn has intensified month by month, as if Volkswagen is gradually withdrawing from the Chinese market, which itself contracted by 24.3% over the same six-month period.
- In the United States—the world’s second-largest market—the Volkswagen Group’s sales fell by 5.9% during the first half of 2026. Only in Europe and South America have the manufacturer’s sales remained relatively stable.
- Overall, the Volkswagen Group’s global production volume dropped by 11% in the first half of 2026. This figure was exacerbated by a significant reduction in inventory, in anticipation of lower sales forecasts for the second half of 2026—even with the arrival of new small electric vehicles in the European market, including the VW ID Polo, VW ID Cross, Skoda Epiq, and Cupra Raval.
- Against this backdrop, Xpeng—a Chinese partner in which Volkswagen holds a 5% stake—could potentially help the German automaker bolster its industrial operations in Europe by producing some of its models within the Volkswagen Group’s European factories. This would also allow Xpeng to avoid the surtaxes applied to electric cars imported from China.
BYD, Great Wall, and Changan are taking over three former assembly plants in Brazil
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BYD, Great Wall, and Changan are taking over three former assembly plants in Brazil
- Chinese automakers, struggling in their domestic market, have decided to gradually expand into foreign markets—with Europe arguably remaining a top priority, given the overall size of these markets and their strong appetite for electric vehicles, a segment in which Chinese manufacturers have carved out a specialty.
- Other markets are also being targeted, such as those in South America. Brazil stands out as the most promising, offering both significant volume and substantial potential.
- Since 2022, the Brazilian passenger car market has seen steady growth, rising from 1.5 million units to 2 million by 2025. While this volume was previously surpassed in 2018 (2.1 million) and 2019 (2.2 million)—and even more significantly between 2010 and 2013, when annual sales well exceeded 2.5 million units—the current trend marks a clear recovery.
- Beyond Chery, which has been established in Brazil since 2014 and produced nearly 60,000 vehicles in 2025, three other Chinese manufacturers are currently establishing a long-term presence in the country: BYD, which took over a former Ford plant in Camaçari (Bahia state) with an annual production capacity of 150,000 vehicles; and Great Wall, which acquired a former Mercedes facility in Iracemápolis (São Paulo state) with an annual production capacity of 50,000 vehicles—a figure that could potentially be doubled to 100,000 units per year. Finally, Changan has taken over the CAOA plant located in Anápolis (state of Goiás), which has an annual production capacity of 90,000 vehicles—a figure announced at the inauguration of the production line in March 2026.
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