A new report from Autocar suggests the upcoming Audi A2 will only feature an electric powertrain and steel construction.

Audi, through its CEO, Rupert Stadler, has already confirmed the probability of a car to slot in between the A3 and the new A1. The Audi A2 will not directly use fossil fuels, according to a report from Autocar. Instead it will be a full electric vehicle that will compete with the upcoming front-wheel-drive BMW Megacity car of 2013 and its Mercedes-Benz equivalent.

Although the previous A2 whose production ended five years ago was of aluminium spaceframe construction, the next version returns to traditional steel due to the relative high cost of aluminium.

In terms of styling, the car is expected to take some of its cues from the predecessor by remaining a tall one-box design with narrow tracks.

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