Audi scraps electric car plans as Tesla delivers latest model

Audi has scrapped plans for an all-electric version of its A2 car and is likely to stop development of the A1 e-tron hybrid, according to motoring magazine, Car.

It is thought likely that sluggish consumer demand, the high cost of production and high retail price have caused the brand to re-think its plans for a range of electric cars.

Meanwhile, specialist electric car builder Tesla has delivered the first examples of its model S – a four-seater luxury all-electric car.

The Tesla S, which is as pleasing in appearance as any current offering from Jaguar or Maserati, boasts impressive performance; the car has a top speed of 125mph and can travel 300 miles before it needs to be recharged. Prices for the Tesla S start at $49,000 (£32,500).

As spokesperson for the Environmental Transport Association (ETA) said: “Electric cars are still very much a niche product and it is perhaps unsurprising that smaller, specialist manufacturers are best placed to meet the limited current demand.”