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Audi Plans Compact Electric Crossover to Broaden Tesla Assault

  • New model would be built at Zwickau, share technology with VW
  • VW’s premium-car unit said to plan compact SUV for China
An Audi electric concept autonomous automobile.

An Audi electric concept autonomous automobile.

Photographer: Krisztian Bocsi/Bloomberg
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Audi plans to introduce an electric crossover about the size of its compact Q3 sport utility vehicle as the Volkswagen AG premium brand fills out its lineup of battery-powered Tesla fighters, according to people familiar with the matter.

The car will be built at VW’s Zwickau factory in Germany and share technology with its sister brand to save cost, said the people, who asked not to be identified as the plan isn’t public. It would complement three different versions of Audi’s first all-electric model, the E-Tron, which was unveiled in California last year, as well as a battery-powered variant of the Q2 SUV designed for the Chinese market, the people said.