Audi is joining the race as automakers gear up to introduce new, lower-cost EV models. The new entry-level EV will sit below the Q4 e-tron, which starts at just over $50,000.
Audi plots a new lower-cost EV, an electric A3 or Q3
After unveiling the new Q6 e-tron this week, its next-gen premium mid-size electric SUV, Audi, is planning a smaller, lower-cost EV.
The Q6 e-tron is the “start of an extensive product initiative,” according to CEO Gernot Döllner. “Despite the recent public debate, there is no doubt the future of the car is electric,” Audi’s boss explained.
“At Audi, we will electrify all core segments by 2027 and have defined a fully electric target portfolio.”
Döllner, who took over for Markus Duesmann in September, said the company is accelerating development on a new entry-level electric car that will be the electric equivalent to the A3 or Q3.
After retiring the A1 and Q2, the A3 and Q3 are Audi’s smallest models. Döllner said the luxury brand is launching an “additional electric model below the Q4 E-tron,” according to Autocar.
“It will be a wonderful, unique independent vehicle concept,” produced in Ingolstadt alongside the new Q6 e-tron.
Döllner didn’t give up any details, but given Audi’s preference toward SUVs, the entry-level EV could take more of a crossover-like design as a sibling to the Q3. The report notes that ex-tech chief Oliver Hoffman claimed Volkswagen’s MEB platform would underpin the EV rather than the new PPE powering the Q6 E-tron.
Audi’s boss said a “final decision on which platform we will use has not been taken,” suggesting it could change. The new electric car is expected to launch in 2027.
The race for more affordable EVs
The new lower-cost Audi EV is “not a four-metre car,” according to Döllner. “We won’t have a successor for the A1 or Q2, not a direct successor. But with the model below [the] Q4 in the [A3] segment, that will be definitely our entry-level car.”
Audi’s latest comments come as several automakers have made similar commitments recently.
Ford is shifting its plans to smaller, more affordable EVs. The American automaker is developing a new low-cost EV platform to underpin a smaller electric pickup and SUV.
According to Bloomberg Businessweek, Ford’s “skunk works” team working on the platform is led by Alan Clarke, who led engineering on the Tesla Model Y.
Sources familiar with the matter say the first model will launch in 2026 with starting prices around $25,000.
Tesla is also planning to launch its next-gen EV, with starting prices around $25,000. Although initial plans called for the EV to be built at Gigafactory Mexico, CEO Elon Musk confirmed it will be built in Texas.
American EV startup Rivian shook the internet after revealing the smaller, more affordable R2, which will start at $45,000. CEO RJ Scaringe unveiled an even smaller and cheaper R3 electric crossover.
Rivian has already confirmed that the R2 will launch in Europe as it expands overseas. According to Scaringe, the EV is already seeing demand, with over 68,000 reservations in under 24 hours.
Audi’s parent company, Volkswagen, announced it aims to begin producing its most affordable ID.1 electric car in 2027, starting at 20,000 euros ($21,700). VW brand leader Thomas Shafer said the ID.1 will offer “affordable electric mobility for everyone.” It will follow the ID.2, revealed as a concept last March.
Based on a new entry-level version of the MEB platform, the ID.2 will start under 25,000 euros ($27,000) with 279 miles range.
VW’s spokesperson for Design, Stepan Rehahk, posted a teaser of the ID.2 SUV, the affordable EVs bigger sibling.
Kia is also planning a series of low-cost models. Its entry-level EV3, starting at $30,000, is expected to launch by the end of the year. The EV4, Kia’s entry-level electric sedan, will follow next year, with starting prices expected around $35,000.
And this just scratches the surface. Automakers and startups from around the globe are racing to introduce lower-priced EVs as demand for affordable options builds.
Electrek’s Take
The rush to introduce more affordable EVs comes as low-cost automakers like China’s BYD continue expanding overseas.
Electric cars pushed China past Japan to become the leading export nation for the first time last year. BYD just expanded its footprint in Europe by launching its best-selling Atto 3 and Seal EV in Greece.
The global EV leader plans to more than triple its share of the European EV market before it even begins production in the region. BYD will start building EVs and batteries in Hungary in 2026, enabling faster deliveries at a lower cost.
Although BYD’s Atto 3 (Yuan Plus) starts at just $16,644 (119,800 yuan) in China, it costs around $40,000 (37,990 euros) in Europe. Once production begins, BYD looks to change that.
Legacy automakers, now Audi included, are rushing to compete with plans to launch their own lower-cost EVs.
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Mining company Vale is turning to Caterpillar to provide this massive, 240-ton battery-electric haul truck in a bid to slash carbon emissions at its mines by 2030.
Caterpillar and Vale have signed an agreement that will see the Brazilian mining company test severe-duty battery electric mining trucks like the 793 BEV (above), as well as V2G/V2x energy transfer systems and alcohol-powered trucks. The test will help Vale make better equipment choices as it works to achieve its goals of reducing direct and indirect carbon emissions 33% by 2030 and eliminating 100% of its net emissions by 2050.
If that sounds weird, consider that most cars and trucks in Brazil run on either pure ethyl alcohol/ethanol (E100) or “gasohol” (E25).
“We are developing a portfolio of options to decarbonize Vale’s operations, including electrification and the use of alternative fuels in the mines. The most viable solutions will be adopted,” explains Ludmila Nascimento, energy and decarbonization director Vale. “We believe that ethanol has great potential to contribute to the 2030 target because it is a fuel that has already been adopted on a large scale in Brazil, with an established supply network, and which requires an active partnership with manufacturers. We stand together to support them in this goal.”
Vale will test a 240-ton Cat 793 battery-electric haul truck at its operations in Minas Gerais, and put energy transfer solutions to a similar tests at Vale’s operations in Pará over the next two-three years. Caterpillar and Vale have also agreed to a joint study on the viability of a dual-fuel (ethanol/diesel) solution for existing ICE-powered assets.
During its debut in 2022, the Cat 793 haul truck was shown on a 4.3-mile test course at the company’s Tucson proving grounds. There, the 240-ton truck was able to achieve a top speed of over 37 mph (60 km/h) fully loaded. Further tests involved the loaded truck climbing a 10% grade for a full kilometer miles at 7.5 mph before unloading and turning around for the descent, using regenerative braking to put energy back into the battery on the way down.
Despite not giving out detailed specs, Caterpillar reps reported that the 793 still had enough charge in its batteries for to complete more testing cycles.
Electrek’s Take
Electric equipment and mining to together like peanut butter and jelly. In confined spaces, the carbon emissions and ear-splitting noise of conventional mining equipment can create dangerous circumstances for miners and operators, and that can lead to injury or long-term disability that’s just going to exacerbate a mining operation’s ability to keep people working and minerals coming out of the ground.
By working with companies like Vale to prove that forward-looking electric equipment can do the job as well as well as (if not better than) their internal combustion counterparts, Caterpillar will go a long way towards converting the ICE faithful.
Argonne National Laboratory is building a new research and development facility to independently test large-scale hydrogen fuel cell systems for heavy-duty and off-road applications with funding from the US Department of Energy.
The US Department of Energy (DOE) is hoping Argonne Nat’l Lab’s extensive fuel cell research experience, which dates back to 1996, will give it unique insights as it evaluates new polymer electrolyte membrane (PEM) fuel cell systems ranging from 150 to 600 kilowatts for use in industrial vehicle and stationary power generation applications.
The new Argonne test facility will help prove (or, it should be said, disprove) the validity of hydrogen as a viable fuel for transportation applications including heavy trucks, railroad locomotives, marine vessels, and heavy machines used in the agriculture, construction, and mining industries.
“The facility will serve as a national resource for analysis and testing of heavy-duty fuel cell systems for developers, technology integrators and end-users in heavy-duty transportation applications including [OTR] trucks, railroad locomotives, marine vessels, aircraft and vehicles used in the agriculture, construction and mining industries,” explains Ted Krause, laboratory relationship manager for Argonne’s hydrogen and fuel cell programs. “The testing infrastructure will help advance fuel cell performance and pave the way toward integrating the technology into all of these transportation applications.”
Speaking of Moog, we talked to some of the engineers being their ZQuip modular battery systems on a HEP-isode of The Heavy Equipment Podcast a few months back. I’ve included it, below, in case that’s something you’d like to check out.
Velocity truck rental is doing its part to help commercial fleets electrify by energizing 47 high-powered charging stations at four strategic dealer locations across Southern California. And they’re doing it now.
The new Velocity Truck Rental & Leasing (VTRL) charging network isn’t some far-off goal being announced for PR purposes. The company says its new chargers are already in the ground, and set to be fully online and energized by the end of this month at at VTRL facilities in Rancho Dominguez (17), Fontana (14), the City of Industry (14), and San Diego (2).
45 120 kW Detroit e-Fill chargers make up the bulk of VTRL’s infrastructure project, while two DCFC stations from ChargePoint get them to 47. All of the chargers, however, where chosen specifically to cater to the needs of medium and heavy-duty battery electric work trucks.
At Velocity, we are not just reacting to the shift towards electric mobility; we are at the forefront with our customers and actively shaping it. By integrating high-powered, commercial-grade charging solutions along key transit corridors, we are ensuring that our customers have the support they need today. This charging infrastructure investment is a testament to our commitment to helping our customers transition smoothly to electromobility solutions and to prepare for compliance with the Advanced Clean Fleets (ACF) regulations.
David Deon, velocity president
Velocity plans to offer flexible charging options to accommodate the needs of different fleets, including both managed, “charging as a service” subscription plans and self-managed/opportunity charging during daily routes. While trucks are charging, drivers and operators will be able to relax in comfortable break rooms equipped with WIFI, television, snacks, water, and restrooms.
Electrek’s Take
While it feels a bit underwhelming to write about trucking companies simply following the letter of the law in California, the rollout of an all-electric, zero-emission commercial trucking fleet remains something that, I think, should be celebrated.