Neither car will be available to buy until around 2018, but the launches are perhaps aimed at stealing the limelight from Tesla's first luxury electric crossover, the Model X, ahead of its planned start of deliveries on Sept. 29.
Electrification was a major theme of the VW Group’s brand cavalcade here, with Volkswagen, Audi and Porsche all revealing significant electric or plug-in hybrid vehicle plans.
Herbert Diess, chairman of the VW brand, said every VW model line would offer a plug-in hybrid variant in the future. VW showcased that intent with the Tiguan GTE concept, a plug-in hybrid derivative of the redesigned compact crossover going on sale in Europe next spring. A long wheelbase model is expected to arrive stateside in 2017.
Martin Winterkorn, VW Group chairman, said the automaker plans to launch 20 new plug-in hybrid or electric vehicles by 2020, further underscoring the automaker’s commitment to electrification.
“The Porsche Mission E and the Audi e-tron quattro are, to put it simply, quantum leaps in our industry. More than 500 km of range with that much performance. This is incredible customer benefit,” Winterkorn said.
The Tiguan GTE, he added, represents how VW plans to introduce plug-in hybrids in more segments.
“Before the end of the decade we will be launching 20 more electric cars and plug in hybrids, from small cars all the way up to the next Phaeton and Audi A8,” Winterkorn said.
Audi had initial misgivings over whether to launch dedicated electric vehicles, a reticence which some analysts said risked making them look like a laggard in an industry where innovation is a major draw for customers.
The all-electric venture represents a change of course for Audi, which had previously focused on developing electric variants of existing models such as its two-seater R8 sports car rather than committing to serial production like German rival BMW with its "i" brand electric series.
While the two car brands did not reveal many specifics about their models, they are set to match Tesla -- whose prices start at around $77,000 -- in the crucial driving range department.
Audi said its e-tron quattro, to be launched by 2018, would have a range of over 311 miles (500 km) per charge. That compares with about 300 miles for Tesla's new Model S P90D, which is already getting rave media reviews.
Porsche also boasts over 500 km of range with its first all-electric concept sports car, two sources close to the company said, adding that it was roomier than the 911 and predicting a market launch in 2018-19.
The Mission E concept “demonstrates how we feel an electric sports car must be like that deserves the name Porsche … no compromise between sportiness and everyday usability,” Porsche boss Matthias Muller said through an interpreter. “We will build a purely electric sports car because there is no electric sports car yet that deserves the name Porsche.”
Audi and Porsche face headwinds in taking on Tesla, some analysts believe.
"The largest challenge set forth by Tesla against all entrants into the pure electric market is that the benchmarks have already been set, and the bar is rather high," said Ivan Drury, senior manager at U.S. automotive website Edmunds.com.
"The fascination with Tesla is not that they were the first to introduce an all-electric vehicle, it stems more from the first electric vehicle without compromise to styling, performance metrics and range," Drury said.
Audi has paid heed with the electric R8 which it dropped in 2012 due to poor range but revived earlier this year after doubling the range to 450 km.
The German brands may rapidly close the gap with Tesla on engine and battery technology, said Laurent Petizon, an automotive consultant with AlixPartners.
Audi and Porsche can make "a better car than Tesla in terms of driving experience, balance, suspension and road handling," Petizon added.
"They have been doing it for 100 years and it's their job."
Ryan Beene contributed to this report.