Audi has begun testing a new entry-level model that is set to indirectly replace the A1 and Q2 when they are retired next year.

The new EV will be the smallest car that Audi offers and is set to be positioned as a rival to the BMW iX1 and upcoming second-gen Mercedes-Benz GLA EV.

Spotted by Autocar spy photographers for the first time, the EV looks like a smaller version of the Q4 E-tron but shows clear visual influence from the A2 of 1999-2005.

Because the new EV won’t serve as a direct replacement for any existing model, it could be assigned a new name – and a resurrection of the long-dormant A2 badge is one possibility.

Speaking previously to Autocar, Audi CEO Gernot Döllner wouldn’t confirm any future naming plans but said it was “thinkable” that the brand could redeploy historic names.

While technical details remain under wraps, the new EV is expected to sit on the Volkswagen Group’s MEB platform, which underpins a raft of EVs such as the Volkswagen ID 3, Q4 E-tron, Ford Capri and Cupra Tavascan.

Given its size and positioning – straddling the boundary between hatchback and crossover – it is likely to have similar dimensions to Skoda’s Elroq.

That car is offered with battery packs of 58kWh to 79kWh and, in its most efficient form, can travel up to 360 miles on a single charge. The sporty vRS version puts out 335bhp.

Unlike the Elroq, the new Audi will be a premium offering in the segment. Döllner previously said: “There are not many brands in the world [that can], but I think Audi can have a true premium offer in the A-segment.”

The decision to replace the A1 and Q2 with a single model is part of “a wider Audi move to simplify the model line-up”, according to Döllner.

The new EV will be the smallest car that Audi will offer, said Döllner, adding that smaller segments “will be utilised by other brands and the group” – models such as the VW ID Polo, VW ID Cross, Cupra Raval and Skoda Epiq.

This will allow Audi to “focus on a specifi c portfolio” that will bring “a more focused and a clearer view for the customer”, said Döllner.