Engineers at Audi are reportedly working on an electric SUV that will hit the market around 2017.
Rupert Stadler, chairman of Audi, told Bloomberg that the German luxury brand is working on a zero emissions vehicle that satisfies US regulations.
"It's probably going to be a crossover, but development work is still ongoing," Stadler said.
According to the business website, if all goes according to plan Audi's first practical all-electric vehicle will go on sale in 2017 and will tackle the Tesla Model X (below) head-on.
The Model X has been delayed several times since it made its debut back in 2012. Originally slated for sale in 2013, the Model X is now scheduled to start moving down the production line in the third-quarter of 2015.
When the Model X hits the showrooms it will feature a version of the prototype's "falcon wing" doors.
The company will also add plug-in hybrid variants to its existing model range. The Audi A3 Sportback e-tron, which we drove earlier this year, is the first cab off the rank and will hit the Australian market from March 2015.
Equipped with a 1.4-litre turbocharged four-cylinder engine, electric motor and six-speed dual-clutch transmission, the 150kW/350Nm A3 e-tron will have a fuel consumption rating of around 1.6L/100km. It should be able to muster around 50km of emissions-free driving with a fully charged battery.