Audi Confirms Q1 Small Crossover

Volkswagen AG's Audi unit says it will introduce its fourth and smallest crossover, the Q1, in 2016.

The entry-level vehicle will compete with such rivals as the BMW X1, Nissan Juke, Opel Mokka and Renault Captur. IHS Automotive estimates the European market for such vehicles will grow 90% to 583,000 units during the next three years.

The Q1 will use VW's MQB (modular transverse matrix) architecture, which debuted last year in the Audi A3 small sedan and VW Golf. The little vehicle will join Audi's existing crossover portfolio, which consists of the Q3, Q5 and Q7 models.

Audi will make the Q1 at its factory in Ingolstadt, Germany. The model will use capacity freed up when the company moves production of the Q5 from there to its new plant in San Jose Chiapa, Mexico.

Audi says about 28% of its total vehicle production this year will be Q series crossovers. The company predicts the proportion will surpass 35% by 2020, the year it hopes to achieve global sales of more than 2 million units.