The restyled C2 Audi 100 was launched in 1976, with an in-line five-cylinder engine. It was initially a 100 PS (74 kW) engine offering "six-cylinder power and four-cylinder economy", and later upgraded to 136 PS (100 kW).

The Coupé was discontinued, but a five-door hatchback model, the 100 Avant, was launched in August 1977 as part of this generation. The mainstay of the range remained the four-door sedan model. A two-door sedan version was offered, primarily on the domestic market, from February 1977, but by now there was little demand for large two-door sedans and thus only a few of these two-door Audi 100 C2s were sold. At the top of the line, the Audi 200 made its appearance at the 1979 Frankfurt Show, with fuel injected five-cylinder engines in either naturally aspirated or turbocharged forms.