Audi is re-evaluating its approach to electrification. The German luxury car manufacturer has revised its previous goal of achieving all-electric sales by 2032. Instead, the company aims to extend the operational life of internal combustion engines (ICE) and expand its hybrid offerings, responding to a slower-than-anticipated adoption of electric vehicles (EVs).

Initially, Audi intended to launch its final new petrol vehicle in 2026 and shift entirely to battery electric vehicles (BEVs) by 2032. However, CEO Gernot Döllner recently announced in a strategy update that the company is adjusting these objectives, acknowledging that the shift to electric mobility is progressing more slowly than originally forecasted.

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

Audi remains committed to introducing new electric vehicles, such as the forthcoming Q6 e-tron and a three-row Q9 SUV, while also prioritizing regional strategies tailored to market demands. This strategy includes the introduction of new combustion engine and plug-in hybrid models, such as the updated Audi A5 PHEV, the next-generation A6, and the Q3 SUV.

There are also speculations regarding a potential return of a hybrid version of the Audi R8, possibly powered by a V8 engine derived from Lamborghini.

This transition is part of a comprehensive product revamp, with the company aiming to achieve one of the youngest lineups in its segments by year-end. The refresh involves abandoning the previous numbering system, which designated odd numbers for combustion and hybrid vehicles and even numbers for electric models.

As Audi continues its electric vehicle journey, this revised strategy reflects a recognition of the necessity for adaptability, striking a balance between innovation and market readiness.

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