- Audi has abandoned plans of ending ICE production and going EV-only in 2032.
- In fact, it will launch a new generation of ICE and PHEV models alongside EVs.
- The German brand is currently “in the process of rejuvenating their entire model range”.
It’s becoming increasingly clear that the automotive industry’s “electric only” dream is a work in progress. Audi, the latest brand to rethink its approach to a purely EV future, has announced that it will keep offering combustion engine models for longer than initially planned, as the market isn’t quite ready for a world of only battery-powered vehicles just yet.
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During Audi’s Annual Media Conference for 2025, CEO Gernot Döllner had this to say: “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 various developments in world markets.”
New Plans, Same Old Combustion Engines
Audi had previously said that the next-generation Q7 would be its last combustion engine model, coinciding with the end of ICE development in 2026. The plan was to keep these vehicles on the market until around 2032, at which point Audi would go fully electric. But now, Döllner has thrown a wrench into that timeline.
Following the example of competitors like BMW, Mercedes, and Volvo, Audi will delay its shift to a purely electric lineup. This move makes sense, especially when you consider that Porsche is still planning to churn out ICE models well into the 2030s.
PHEVs Are Here to Stay, For Now
At the same conference, Döllner also teased upcoming model launches for 2025: “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.”
Döllner confirmed that the new generation of the Q3 will arrive this summer, following the recent launch of the new A6 in Avant form. He also announced that a plug-in hybrid version of the A5 will debut on March 25 as one of the 10 new PHEVs set to be introduced this year. He described PHEVs as “a central part of our portfolio as we move towards an all-electric range,” suggesting that Audi will place greater emphasis on these types of powertrains.
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In North America, Audi will launch 10 new models by the end of 2025 and is “currently assessing various scenarios for additional localization” as a way of dealing with the US administration’s new tariffs. As for the Chinese market, it has “further intensified” its product strategy with FAW and SAIC, hoping to “participate in the growth of the electric car market” as its execs believe they are already a “strong player in the combustion engine business”.
Of course, Audi isn’t delusional about the challenges ahead. CFO Jürgen Rittersberger described 2025 as a “very challenging year” for the brand, citing the “tense geopolitical and economic situation” of 2024. Still, he believes in the prospects of their renewed portfolio, as new models are now “successively reaching the markets”.
