In a shift that echoes similar moves by other automakers, Audi is rethinking its ambitious timeline for an all-electric future. The German automaker, part of the Volkswagen Group, now acknowledges that the transition to electric vehicles is taking longer than initially anticipated, potentially delaying its planned phase-out of combustion engine cars.
In 2021, Audi announced a plan to become entirely electric by 2032, with the last combustion-engine vehicle slated for launch in 2026. However, speaking at a recent conference regarding 2024 sales results, CEO Gernot Döllner shared a revised outlook. Döllner stated, “2032 was the date we had communicated. With the delayed transformation towards electric mobility, we have to assess those dates and deadlines.”
Audi’s revised strategy involves “taking a look at the life of combustion engines” globally, as the company believes it will take longer than originally planned to fully embrace electric vehicles.
This shift comes as Audi experienced a decline in EV sales in 2024. Sales figures revealed a 19.5 percent drop in demand for Audi EVs, totaling 158,343 units. The company attributes this downturn to “a challenging overall market environment, tougher competition, and significantly lower overall demand for fully electric vehicles.” However, it’s worth noting that rival BMW saw an 11.6 percent increase in EV sales to 368,475 units during the same period, exceeding both Mercedes and Audi’s combined EV sales.
Audi is now focusing on a more flexible approach, preparing to introduce several new models powered by combustion engines. Recently unveiled models include the new A5 (in liftback and wagon variants), the Q5 and Q5 Sportback, and the A6 Avant, with a sedan version expected soon. The next-generation Q3 compact crossover is due to debut this summer. Spy shots suggest a new Q7 is also in development.
Audi’s move also suggests it isn’t completely abandoning diesel engines. The company has adapted the TDI to meet upcoming Euro 7 regulations, although further investment is unlikely due to declining sales. According to the European Automobile Manufacturers’ Association (ACEA), sales of diesel vehicles in the EU+EFTA+UK region accounted for just 10.4 percent of deliveries last year, a significant drop from its dominant market share in select countries.
On the higher end of the lineup, there are whispers about a possible return of the R8 supercar, potentially with a plug-in hybrid V-8 system derived from the Lamborghini Temerario. At the other end of the spectrum, Audi will discontinue the A1 and Q2, with no plans to renew these entry-level ICE models after the current generation. These two vehicles combined to generate 131,000 sales in 2024.
Döllner acknowledged that “an extension of combustion engines will have a positive impact on our business model.” This makes sense considering EVs represented only 9.4 percent of Audi’s total shipments in 2024, making a full transition by 2032 an unrealistic goal, even for the most optimistic executives within the company.
