Tesla exists without a direct competitor in the luxury electric vehicle space, but that will change.

Audi of America president Scott Keogh said luxurious electric vehicles (EVs) will be an important part of Audi's long-term strategy, in an interview with Automotive News at the Frankfurt Auto Show. The company debuted its e-tron quattro concept, an electric crossover, at the show, with plans to put it in production by 2018.

Keogh outlined a similar strategy to that of Tesla when it launched the Model S: Make an electric car that's desirable. Before the Model S came along, EVs really only appealed to enthusiasts, not to a wider audience. He also called out "compliance cars," which are fairly crude EVs some automakers build to satisfy local (often California) regulations.

“Our number one thing is not to build a compliance car but to build a cool, desirable car, because that’s what’s going to help our brand and our customers are going to like it,” he said. Keogh predicts that EVs will make up a quarter of Audi's sales by 2030.

The company plans to put the e-tron quattro concept into production by 2018, with another EV successor planned in the years that follow. Keogh notes that improving battery technology, boosting range and performance while lowering costs, will help the push towards EVs.

Audi CEO Rupert Stadler poses next to the new Audi e-tron quattro concept car at the International Motor Show IAA in Frankfurt/Main, 15 September 2015. Image: Uli Deck/dpa/Corbis

Audi is certain in its plans to make an electric crossover, but there is still much to be decided, like whether or not the EV will be a standalone model. It could very well just make a fully electric version of the Q7 SUV, but that lacks the drama of a new model.

Audi's CEO Rupert Stadler weighed in on this issue: “There is still some way to go but if you ask me, it’s the icon. It’s the start for Audi into a new decade of auto-mobility and maybe it should be called the ‘e-tron.' For me, it’s a statement.”

The successor to the e-tron quattro hasn't been determined yet either, but Audi has been showing off a concept of an electric version of its R8 sports car.

Elon Musk is on the record for having downmarket ambitions, but his cars are clearly making waves at the higher ends of the market. Audi must be watching them closely, considering how much of the e-tron quattro concept seems to target Tesla's forthcoming Model X.

Tesla's long-term viability is still in question, but the old vanguards of the auto industry are taking them seriously.