Audi is set to cap its new-era line-up with a rugged, luxurious SUV in the mould of the Land Rover Defender and Mercedes-Benz G-Class as a halo model that will introduce radical new design and technology features to its more mainstream siblings.

It first emerged that Audi was considering a flagship 4x4 model line in 2023, when then design boss Marc Lichte suggested such a model would build neatly on the brand’s legacy of Quattro off-road models and tap into a highly profitable part of the market in which Audi was unrepresented.

“There is potential because there are only two premium players” in the luxury 4x4 segment (Mercedes-Benz and Land Rover), he said, “and I think there is a space for a third one”.

Lichte left Audi shortly after but was replaced by ex-JLR designer Massimo Frascella, whose role of shaping the Defender in his previous job reinforced speculation that Audi was gearing up to launch a similar car – and now Audi boss Gernot Döllner has hinted that an unveiling is on the horizon.

Asked whether the 4x4 was still a live project, he told Autocar: “Stay tuned.”

Launching a relatively low-volume model would seem at odds with Döllner’s wider objective to simplify the Audi line-up, but he said it remains important to have flagship cars that serve as technology showcases for the brand and can influence other models as well.

He said: “There is no niche banner. It’s just the opposite. It works perfectly to have a more focused line-up in the core, and in addition to that have some niche models to build the brand and to also transfer new ideas from a niche segment into the core products. That works perfectly and this is part of our strategy.”

On the potential for a Defender-rivalling Audi 4x4, he said: “Don’t give up on that dream.”

Previously, it was thought that Audi’s luxury 4x4 could be aligned with the similarly conceived debut models from new Volkswagen Group electric brand Scout – the Traveler SUV and Terra pick-up – and built alongside them at the company’s new US factory in South Carolina.

Döllner told Autocar that the US’s new import tariffs have prompted the brand to consider building cars locally there, and this new 4x4 would seem a viable candidate for US production, given the popularity of such cars in the US.

“At a group level, we are right now discussing and investigating whether or not we should have a factory for Audi in the US,” he said. “But that’s dependent on a stable tariff situation and also on other regulatory boundary conditions that we would need to take [into consideration for] a decision like that.”

He added that it could be “logical” to build Audi models in an existing VW Group facility in the US – including the Scout plant – but said: “The big question is if we want to have a specific Audi factory or not, and that decision is absolutely open and dependent on how we are we aligned with the US government.”