Slower-than-expected growth in EV demand and new hybrid tech mean Audi could extend lives of petrol and diesel engines
Audi may no longer launch its final ICE car in 2026 as originally planned and will use this year to decide a new timeline for phasing out ICE cars.
Audi previously announced that it would launch its final ICE car in 2026 – expected to be the next-generation Q7 – and remove it from sale in 2032, but different speeds of EV adoption in key global markets mean the company could keep petrol and diesel powertrains in its range for longer than planned.
Speaking at the company's annual results presentation, CEO Gernot Döllner outlined the ongoing importance of ICEs and emphasised Audi's substantial investment in new-generation hybrid technology.
“For all global regions, we are going to take a look at the life of combustion engines," he said. "2032 was the date we had communicated, but we have to reassess those dates and deadlines."
Explaining that the transition to EV powertrains is "going to be longer than we had originally planned for", Döllner said that ICEs will continue to have an important role to play in the medium term - particularly as the basis for hybrid powertrains.
The new Audi A5 plug-in hybrid will be revealed next week as one of 10 new PHEV models due in 2025, with the A3, A6, Q5 and forthcoming next-generation Q3 also due to receive PHEV variants over the coming months.
The new Q7 and a larger, mainly US-focused model known as the Q9 are also set to be offered with PHEV power when they're launched in the coming years.
Audi's latest ICE cars are scheduled to remain on sale last well beyond the end of the decade, Döllner said, and the company is prepared to extend their lifecycles yet further if the demand is there and legislation allows.
"On balance, an extension of combustion engines will have a positive impact on our business model," he said.
In 2024, EVs accounted for less than 10% of Audi sales globally, and the firm remains committed to maintaining a "flexible offering of drivetrains" to avoid ceding market share to rivals.
Döllner said that diesel engines remain an important offering in that context but the firm "will not invest heavily in new diesel generations".
The firm's current TDI units are compliant with the EU's Euro 7 emissions regulations and will remain available to order "as long as we are able to produce and bring these engines to market".
"We won't extend our diesel line-up – if you look at the numbers, it's declining – but it's important to us, so we are flexible in that field," said Döllner.
