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A new report out of Europe suggests that Audi is hard at work developing the A2, which will be electric only, and aim to compete with BMW's Megacity EV.

Confirming an earlier suspicion we reported in March of this year, Autocar is reporting that Audi will aim the return of the A2 squarely at BMW's Megacity electric city car.

Audi will have a slight edge on BMW, as they intend to bring the A2 to market by 2012, with BMW lagging a year and scheduling a 2013 on-sale date.

If the A2 is to resemble the forward-thinking model that once bore its name, it will likely retain a tall, almost awkward MPV style. Should Audi find a way to make the A2 as innovative as the original - which was ahead of its time due to its all-aluminum construction - it could prove to be a big mover in the EV market.

References
1. 'New Audi A2 'electric only'...' view