Audi revises EV-only plans, embraces hybrids and new combustion engine vehicles

Audi is reassessing its electrification trajectory. The German premium automaker has walked back its earlier target for all-electric sales by 2032. Instead, it now seeks to lengthen the lifespan of internal combustion engines (ICE) and build out its hybrid portfolio due to slower-than-hoped-for EV uptake.

The German luxury carmaker had originally planned to introduce its last new petrol-powered car in 2026 and transition to BEVs entirely by 2032. But CEO Gernot Döllner confirmed in a recent strategy update that the brand is revising those targets, saying the transition to electric mobility is taking longer than expected.

Hybrid models gain traction

Drive.com reported that increased demand for hybrid cars is making Audi change course. As plug-in hybrid sales increase, the company believes it has a window of opportunity to extend its production of combustion engines longer. "Extending combustion engine production will benefit our business model," Döllner said. "We want to build combustion engines up to the last possible minute," he added.

In 2024, Audi sold 1.7 million cars worldwide, down 11.8 per cent from the year before. Of these, 164,480 were battery electric vehicles, representing slightly less than 10 per cent of sales. This is behind industry competitors such as Mercedes-Benz and BMW, showing the struggle Audi has to compete in the electric marketplace.

Balanced strategy across markets

While Audi continues to be focused on bringing new EVs, like the upcoming Q6 e-tron and a three-row Q9 SUV, the brand will also emphasize regional strategies based on market needs. This encompasses the launch of new combustion-powered and plug-in hybrid models like the refreshed Audi A5 PHEV, next-generation A6, and Q3 SUV.

There are even rumors of a hybrid-powered Audi R8 return, perhaps fueled by a Lamborghini-derived V8.

Audi’s shift is part of a broader product overhaul. The company aims to have one of the youngest portfolios in its segments by the end of the year. This refresh includes ditching the earlier plan to use odd numbers for combustion/hybrids and even numbers for electric models.

While the EV journey continues, Audi’s recalibrated approach acknowledges the need for flexibility—balancing innovation with market readiness.

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