Although Audi had hopes for the Q2, the automaker has decided to go a different direction with its lineup and future endeavors, focusing more on SUVs and vehicles that are more profitable. Unfortunately, this means cutting the Q2 from future lineups after only one generation. The vehicle itself will continue to be manufactured in its current iteration for a few more years in several factories across the globe; however, it will not return for future generations. Further, slowly declining sales figures are to blame, giving Audi justification for the vehicle's cancellation.

Read on to find out more about why Audi only made one generation of the Q2.

Related: Here’s What We Love About The 2021 Audi Q2

SUVs Have Better Profit Margins

Audi Q2 parked in front of green palms
via Motor1

Given the declining popularity of small cars and sedans, Audi has chosen to prioritize SUVs as their future vehicles of production. SUVs, however, have been gaining in popularity. The Q2 was a smaller option for Audi, ideal for those who didn't make space a priority and didn't mind paying a significantly higher sum compared to other cars. That said, the usual trend is for buyers who don't prioritize space to be on a budget, so it's a hard sell (literally) for a car with both small interiors and luxury pricing.

Audi decided the Q2 as its latest entry-level model, although future strategies envision the brand as a haven for premium models. The bottom range will be limited, hence the Q2's cancellation, and the top range will be widened. While the Q2 never had the profit margins Audi wanted, it was the entry-level model, forcing Audi to find a new vehicle, most likely the A3, to fill that role when the Q2 finally concludes production. Further strategic alterations show the company shifting focus to electric vehicles (EVs) by 2033, meaning the Q2 was not going to fit into future plans anyway.

The Q2 Didn't Sell Well

gray Audi Q2, rear view
via Carscoops

Unfortunately, sales figures for the Q2 were not as high as the company had hoped. After all, Audi wants to focus its attention on other vehicles that be more tried and proven in tough situations, and avoid those with problems. Gas-powered cars are on the way out, and EVs are taking over.

Profit margins with the Q2 are too slim, as mentioned earlier, and fewer units overall have been sold. Audi did not want to take the chance of this repeating in future generations, hence the hasty delivery of the ax on Q2 production. The Q2 may have been labeled a “mini SUV,” but the public seems to want the real thing.

While Audi has also been known to focus on the s4, which is gaining a 2022 model, they also plan to unveil the Q6 e-tron later this year. Further, a newly-renamed Q8 e-tron also plans to arrive. Also of note at this point is that future lineups are planned to be more expensive.

Related: 10 Reasons Why Every Gearhead Should Drive An Audi RS4

The Current Q2 Will Stick Around

Audi Q2 parked in lot by itself
via Audi Media Center

Although the Q2 will not be renewed for future generations, the current model will continue to be manufactured for a few more years. Despite the lack of a direct successor, Audi has chosen to keep Q2 production in its current iteration, continuing for a few more years before it officially wraps up production. All-electric models are the theme of growth come 2026, and Audi wants more EVs offered in its lineup.

Just as recently as late 2021, Audi had expressed hopes for the Q2's success in multiple interviews. Those hopes have been dashed thanks to low profit margins and fewer units sold, forcing Audi to rethink its Q2 strategy on the fly. While the strategy it now employs was considered inevitable, these factors have forced Audi to move up their timetable and become more bold and proactive in their implementation.

One side effect is the company will have more capital available for EV development, as they plan to be exclusively EVs by 2033 and the final gas-powered vehicle will arrive at the sales floor in 2026. That said, however, the lineup won't be entirely revamped, as some popular classics and mainstays will be reimagined as EVs to coexist in future lineups.

The Q2 Is Built Globally

Silver Audi Q2 racing down road
via Motor1

The Q2 is built in several factories across the globe, including one in China. After all, Ingolstadt is not the sole home of production for the Q2, known as the Q2L in China to denote its longer wheelbase that gives its passengers more legroom.

An all-electric propulsion E-Tron variation of the Q2 is also available in China. That said, this zero-emissions, 38-kWh battery pack variant is a China exclusive, delivering 165 miles of range per charge. Further, demand for the Q2 is higher in China than anywhere else on the globe, so production of Audi's gasoline-fueled vehicles may continue longer there after they cease production in 2026 if demand allows.

Sources: motorbiscuit.com, motor1.com, quattrodaily.com, autodaily.com,