Audi drops plans to sell only electric cars after 2032
03/23/2025 04:00 PM
The internal combustion engine will live on beyond Audi's all-electric deadline, breathing life into hybrid and performance models including the R8 supercar.
Audi has taken a step back from its previous plans to sell only battery-electric cars after 2032, announcing a new generation of internal combustion engines and hybrid powertrains.
The German car maker previously planned to introduce its final new petrol-powered model line in 2026, with the end of the vehicle's lifespan in 2032 seeing Audi sell only battery electric vehicles from then onwards.
While announcing its latest financial results and strategy in Germany, Audi CEO Gernot Dollner walked back the goal.
"[The year] 2032 was the date we had communicated [to drop petrol and diesel engines]. With the delayed transformation towards electric mobility, we have to assess those dates and deadlines," Dollner said in a media conference.
MORE: Audi R8 to return with 1000hp V8 hybrid – report
According to Motor1, the Audi CEO added "an extension of combustion engines will have a positive impact on our business model".
This marks a change from comments in mid 2024 when Dollner told Autocar Audi was committed to an all-electric line-up in all countries apart from China.
Audi is part of Volkswagen Group, but within the Audi division are brands Bentley, Lamborghini and motorcycle maker Ducati.
In 2024, Audi sold 1.7 million vehicles globally, an 11.8 per cent decline compared to 2023, although supercar maker Lamborghini stood out with record sales both globally and in Australia.
MORE: 2025 Audi A6 revealed as petrol and diesel Avant wagon
Audi's overall global figure included 164,480 battery-electric cars, making up 9.7 per cent of its worldwide sales – behind Mercedes-Benz (185,100 sales) and BMW (426,594 including 56,181 from Mini, which it owns).
As sales of hybrid models have risen, Motor1 reports the Audi CEO said the car maker now plans to "take a look at the life of combustion engines" as shifting an electric-only lineup is "going to be longer than we had originally planned for."
Having produced its first battery-electric production model in 2018, Audi is one of a swathe of companies to have pulled back on previous electric vehicle targets.
This includes Alfa Romeo, Mercedes-Benz and Volvo, with BMW recently recommitting to V8 power for future models.
MORE: Audi Australia to expand PHEV line-up to diversify electric portfolio
Audi's revised strategy will focus on China – the world's largest car market where German brands struggled against domestic competition in 2024 – as well as the US, where hybrid sales increased 36.7 per cent last year.
"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," Dollner said.
"We will manage the production of our last combustion engine vehicles depending on the various developments in the world markets."
Audi's market-specific regional strategies include plans to launch 10 new models in the United States (US) by the end of 2026 – as tariffs from US president Trump continue to shake up the world's second largest car market.
MORE: Audi won't discount electric vehicles, but a more affordable Q4 e-tron is on the radar
Audi says it will launch 10 plug-in hybrid models by the end of 2025.
A plug-in hybrid Audi A5 is set to be unveiled later this month, with the new Audi A6 sedan and Avant (wagon) as well as next-generation Audi Q3 SUV to be revealed this year.
This could also be good news for fans of the Audi R8 supercar rumoured to be making a return to showrooms using a Lamborghini hybrid V8.
New electric Audis will still be rolled out in China – and elsewhere – with its 2025 focus on the new Audi Q6 e-tron, which will include a more affordable version below the Luxury Car Tax (LCT) threshold when it arrives in Australian showrooms.
MORE: Audi backflips on odds-and-evens naming strategy to split electric from combustion models
A three-row Audi Q9 large SUV – a new nameplate for the brand – has not been confirmed for Australian showrooms.
"We are in the process of rejuvenating our entire model range, and by the end of the year we will have the youngest portfolio in our market segments," Dollner said.
Earlier this year Audi also ditched plans to use an 'odds and evens' naming strategy where odd numbers were used to name petrol/hybrid models and even numbers for battery-electric vehicles.
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