Most major automakers are working on a new generation of compact vehicles to help meet tough emissions and fuel-economy standards set to be introduced in most major markets over the next couple of years. One of the most active in the industry is Audi, which is reportedly working on a handful of new models all positioned below the current entry-level A3.

These new models will include the A1 minicar, which has already been spotted testing in prototype form and is set to do battle with other premium compacts like the Mini Cooper. Then there’s a successor to the slow-selling A2 compact, previewed here in this latest computer generated rendering.

The A2 is currently in the concept stage and is being discussed by management back at Audi’s headquarters in Ingolstadt, Germany. Speaking with Autocar, Audi boss Rupert Stadler admitted that the introduction of an A2 model was highly likely.

"As we gave the A1 that nomenclature there’s clearly room for another product and another concept between the A3," he explained.

1999 Audi A2, Frankfurt Auto Show

1999 Audi A2, Frankfurt Auto Show

The original A2 utilized expensive aluminum construction, which essentially priced it out of the compact car segment and led to its market failure. For the new model, Audi will share components with sister-company Volkswagen in an effort to keep costs low. This means that it will likely share components with the Polo, including several new compact three-cylinder gasoline and diesel engines.

An all-electric version may also be offered, though its release date isn’t expected until after 2014.