Lesson learned: Audi Q8 E-tron addresses issues that held first-gen EV back

HEALDSBURG, Calif. — When the Audi E-tron debuted in 2019, you could count its direct rivals on one hand, the Tesla Model X and Jaguar I-Pace chiefly among them. But Audi's first electric vehicle came out of the starting gate with immediate handicaps: It was slower to charge and offered just 204 miles of range vs. 325 for the Model X at the time and 234 for the I-Pace.

And then there was the sticker price: $75,795 including shipping.

Praised by critics as fun to drive and very Audi-like, the E-tron did everything it was initially supposed to do — except instantly electrify Audi's sales.

Roger Penske, chairman of Penske Automotive Group, the nation's third-largest dealership group and a major seller of luxury vehicles, blamed sticker shock for the E-tron's slow start.

U.S. sales topped 10,000 for the first time in 2022, after the COVID-19 pandemic and microchip shortage undermined early supplies. The first-generation's price and technical limitations amid low EV demand didn't help initial sales numbers either.

As part of a midcycle update for the 2021 model year, Audi slashed the price to $66,995 including shipping and increased the E-tron's EPA-estimated range to 222 miles.

The second-generation EV, rebranded the Q8 E-tron to signal its flagship role in the Audi lineup, has gained more chops for 2024. Range has improved about 30 percent to an EPA-estimated 285 miles on the standard Q8 E-tron and up to 300 miles on the Q8 Sportback E-tron. The base price has been hiked by $3,600 over the outgoing model to $75,595 including shipping, just under the inaugural 2019 pricing, to reflect the increase in range, faster charging capability and additional advanced driver-assist system features such as Level 2 adaptive cruise control.

Because the Q8 E-tron is ineligible for a federal tax credit of up to $7,500 on purchases, Audi plans to leverage a provision in the Inflation Reduction Act that allows automakers to pass along the credit to customers who lease.

While leasing is expected to increase, Audi officials say "staunch buyers" will also provide a lift to sales.

"We have a good value story, more range and more content," Filip Brabec, senior vice president of product management for Audi of America, said during the press introduction for the EV here in May. "We're fairly confident ... the customers are there, and we're not in a crazy place with price."

But there is more competition: The BMW iX, Mercedes EQE crossover, Cadillac Lyriq, Rivian R1S and Genesis Electrified GV70 are new rivals.

The Q8 E-tron joins the smaller Q4 E-tron and the forthcoming Q6 E-tron to give Audi a trio of core electric utility vehicles in a market fully dominated by light trucks.

The Q8 E-tron will also play a key role as Audi counts on EVs and plug-in hybrids to represent 30 percent of U.S. sales in 2025.

The brand plans to sell more than 20 electric models by 2026, when every new model launched will be all-electric. The entire portfolio is expected to be fully electric by 2033.

Audi says the typical Q8 E-tron customer is someone who would also gravitate to the internal combustion engine-powered Q8 midsize crossover.

The Q8 E-tron and Q8 Sportback E-tron are built in Brussels, and there are signs initial U.S. allocations will be tight. The vehicles went on sale in May.

"Everything that comes over goes out. ... To get more is not easy, but the market can see we are making step-by-step progress," said Brabec. "When the Q6 E-tron arrives next, we will have a beautiful family of EVs."

The Q8 E-tron's rear-biased drivetrain is equipped with two motors, and for 2024, the rear motor gets two extra windings, up from 12, allowing it to create a stronger magnetic field from the same amount of electricity. The change creates more torque and lower energy consumption. When combined with a higher-capacity battery — 114 kilowatt-hours on the 2024 model vs. the 86.5 kWh pack on the 2023 model — the result is more range.

A new 114-kWh lithium ion battery pack features 36 modules, each with 12 stacked prismatic cells that provide about 20 percent more capacity, while slotting into the same space as the battery in the first-generation E-Tron.

The Q8 E-tron accepts 170 kilowatts of electricity, up from 150 kW, at a DC fast charger. Audi says that should be enough to go from a 10 percent charged battery to 80 percent in about 31 minutes. With Level 2 charging at home, the standard 9.6-kW charger will replenish the battery in about 13 hours, Audi says, while a $1,850 optional 19.2-kW upgrade cuts that time in about half.

To coax fence-sitters, Audi is offering two years of free Electrify America DC fast charging, as well as the Plug & Charge payment tool, which eliminates a separate payment card at select U.S. charging stations. The brand also will provide a complimentary one-week rental of an Audi for owners worried about range anxiety and charging times on long trips.