For 2019, Audi is said to be working on a brand new city car to rival the Smart Forfour, Vauxhall Adam and Fiat 500.

It will reportedly slot below the brand’s current entry-level model, the A1, and use Volkswagen Group’s New Small Family (NSF) front-wheel drive architecture, a platform versatile enough to allow for the development of both three- and five-door bodystyles.

The Audi city car will be offered with a 1.0-liter turbocharged three-cylinder petrol engine and an all-electric powertrain with a lithium-ion battery pack and electric motor similar to those used in the VW e-Up. Intriguingly, the automaker is said to have ruled out a diesel engine due its higher development costs.

This is the third time Audi attempts to enter this segment. In 1999, the original Audi A2 was introduced but soon scrapped after failing to pull buyers away from the Mercedes-Benz A-Class. In 2011, an electric A2 concept was unveiled and pinned to reach the production line, but in 2013 the project was axed.

Note: 2011 Audi A2 Concept pictured

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