EV-only future scrapped as Audi U-turns on going fully electric

Having announced plans to be fully electric in Europe after 2026, Audi has become the latest automaker to backtrack on its plans of completely phasing-out the internal combustion engine.

Move switch at a troubled time

Back in 2021, the Four Rings stated it would transition to making only EVs by said year, before producing its final combustion engine in 2033.

A move that would have seen stock of petrol and diesel motivated models drying-up by 2034, a year before the gazetted ban of all combustion engine vehicles in Europe comes into force, the brand has now stated it will continue to invest in both TFSI and TDI mills well into the next decade.

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The latest move comes less than two days after it announced the laying off of 7 500 jobs between now and 2029 as part of a mass restructuring process aimed at speeding up sales in key markets after positing a record sales loss in 2024.

Back in February, the closure of the 70-year old Brussels plant in Belgium became official, bringing an end to the original e-tron that became the Q8 e-tron after its first mid-life update in 2023.

Range renewal

Speaking at its annual media conference about the passing year this week, Audi CEO, Gernot Döllner, said it will embark on a range rejuvenation by continuing with its 20 model product roll-out announced last year.

Aside from the next generation Q3, it will also introduce the all-new A6 later this year, as well as focusing on China where sales took the brunt of the decline last year.

“By the end of the year we will have the youngest portfolio in our market segments,” Döllner said in a statement.

“As part of our product initiative, we are not only launching new electric models but also a new generation of combustion engine vehicles and plug-in hybrids.

“We will manage the production of our last combustion engine vehicles depending on the various developments in the world markets”.

Despite renouncing the development of any new diesel engine as the current 2.0-litre and 3.0-litre units already conform to the pending Euro 7 emissions regulations, Döllner said it will introduce no less than 10 plug-in hybrids before the end of the year starting with the new A6 on 25 March.

“The focus here is on rejuvenating our portfolio with numerous new models. At the same time, we are working intently on creating more efficient structures throughout the entire company, with a view to getting innovations onto the road faster,” Döllner continued.

Tough road ahead

In making the announcement, Döllner said a drop in sales of 11.8% across all of Audi’s respective brands from 1 918 912 vehicles in 2023, to 1 692 548 in 2024.

Out of these, Audi-badged vehicles accounted for 1 671 218 versus the 1 895 240 sold in 2024.

“We have kept Audi on track amid a tense geopolitical and economic situation and closed out the year on financially sound footing,” Chief Financial Officer, Jürgen Rittersberger, said.

“Two-thousand-and-twenty-five will be a very challenging year for us. But we are renewing our product portfolio, and these new offers are now successively reaching the markets. We set the strategic direction in 2024. We will continue on this course in 2025″.

What South Africa can expect

In South Africa, the brand’s product offensive has already started with the facelifted A3, Q7, SQ7, Q8, SQ8 and RS Q8, with the second quarter set to see the arrival of the facelift RS3, the all-electric Q6 e-tron and, in the third quarter, the all-new A5 that replaces the A4.

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