Audi just pulled a massive U-turn on electric cars and combustion engines will stick around for another decade

Remember when Audi boldly declared they’d go all-electric by 2033? Well, that promise just got tossed out the window. The German automaker’s CEO has now confirmed that combustion engines will remain in production for at least another seven to ten years, making this one of the biggest strategy reversals in recent automotive history.

This isn’t just another minor adjustment to production timelines. We’re talking about a complete 180-degree flip from what Audi promised back in 2021. Back then, the four-ring brand was riding high on electric vehicle enthusiasm, promising to launch their last gasoline models in 2025 and become fully electric by 2033.

What exactly did Audi promise four years ago?

The original commitment was pretty ambitious. Audi stated they would create “a more innovative, inclusive and sustainable future” with clear targets: all new models would be electric by 2026, and combustion engine production would cease entirely by 2033. This timeline aligned perfectly with the European Union’s Green Deal and the planned ban on combustion engines by 2035.

Only China got a special exemption in their original plan, where Audi left the door open to continue producing thermal engines beyond 2033. But for the rest of the world? Complete electrification was the goal.

Enter the new boss with a different vision

Gernot Döllner, who took over as CEO in September 2023, clearly has different ideas than his predecessor. In a recent interview, he revealed that Audi will likely continue producing gasoline vehicles until 2035 and possibly beyond that date.

Here’s the interesting part: Döllner explained that a robust product rollout through 2026 will give the brand the flexibility needed to keep selling internal combustion engine vehicles for “another seven, eight, or maybe ten years.” He didn’t rule out extending production beyond the mid-2030s either, noting that it all depends on customer demand.

“We’ll see how our markets evolve,” Döllner said. “We’ve already decided to extend production beyond the end dates we communicated in the past.” (That’s diplomatic speak for “we’re backtracking on our promises.”)

But wait, aren’t Audi’s electric sales actually doing okay?

That’s what makes this reversal so surprising. Audi’s electric vehicle sales aren’t exactly tanking. Sure, they had to halt production of the Q8 E-Tron and close a factory due to disappointing sales figures, but their other electric models are performing reasonably well.

In the first quarter of this year, Audi delivered 46,371 electric vehicles – that’s a 30.1% increase compared to the same period in 2024. For context, BMW nearly doubled that figure with 86,449 electric cars delivered, but Audi still outsold Mercedes, which managed only 40,706 electric vehicle deliveries.

A new entry-level electric model equivalent to the A3, scheduled for next year, should help boost electric sales thanks to its lower price point compared to the Q4 E-Tron. Yet combustion engines are staying put.

What this means for Audi’s lineup

New models like the A5, A6, and the recently unveiled Q3 will likely remain on the market well into the 2030s. Most of these will also get high-performance S and RS versions, which typically rely on powerful gasoline engines.

This creates an interesting scenario. What happens if the European Union sticks to its plan of banning combustion engine sales in 2035? Audi might have to completely eliminate thermal models in Europe while continuing to produce them for other markets not subject to EU regulations.

The domino effect across German luxury brands

Audi isn’t alone in this retreat from aggressive electrification timelines. Mercedes-Benz, which had planned to stop producing combustion engines by 2030, also reversed course last year and announced they’d continue manufacturing them throughout the next decade.

Of the three major German luxury brands, only BMW has refused to set a firm date for abandoning thermal engines. They’ve consistently maintained that customers should have the choice, while pointing out that charging infrastructure remains inadequate in many markets.

The reality is that both Audi and Mercedes are moving toward electrification, but they’re now acknowledging that the transition will take longer than initially anticipated. The companies have recalibrated their strategies accordingly.

Why the sudden change of heart?

Market realities have a funny way of trumping corporate promises. While electric vehicle adoption is growing, it’s not happening at the breakneck pace many automakers expected. Consumer preferences, charging infrastructure limitations, and varying global market conditions have forced a more pragmatic approach.

The shift also reflects the complex challenge of transitioning an entire industry. Strategic decisions like these require years of planning due to their far-reaching implications, and automakers are likely being more cautious now than they were four years ago when electric vehicle optimism was at its peak.

For consumers, this means more choice for longer. Whether you prefer the instant torque of an electric motor or the familiar rumble of a combustion engine, Audi will have you covered well into the 2030s.