A new Audi Q1 SUV will join the company's range from 2016.
Audi says that the Q1 will be produced at its plant in Ingolstadt from 2016, alongside the A3, A3 Sportback, A4 and A5.
The Q1 is expected to be priced to compete with the likes of the Mini Countryman.
Audi chairman Rupert Stadler said: 'The Q1 will round off the Q series at the bottom end.'
Audi's Q range of SUVs makes up 28% of Audi sales, and the company expects this to rise to 35% by 2020.