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- While the company had always maintained flexibility for continued thermal engine sales in China, the European and global markets were destined for an all-electric future.
- While Markus Duesmann had championed the earlier aggressive timeline, Dollner’s appointment as CEO in September 2023 appears to have ushered in a more realistic assessment of market conditions.
- To strengthen its electric portfolio, Audi plans to introduce an entry-level model in the A3 segment, positioned as a more affordable alternative to the Q4 E-Tron.
The German luxury automaker has quietly shifted its electrification roadmap, keeping internal combustion engines in production for at least another decade. This marks a significant departure from earlier commitments made by the Ingolstadt-based manufacturer.
Strategic pivot from previous electric-only promises
Just three years ago, Audi boldly announced that 2025 would mark the introduction of its final new ICE model, with plans to achieve a fully electric lineup by 2033. While the company had always maintained flexibility for continued thermal engine sales in China, the European and global markets were destined for an all-electric future.
That timeline? Well, it’s getting a major overhaul.
Gernot Dollner, the company’s CEO, recently clarified the automaker’s revised position during an interview with British publication Autocar. Gasoline engines will remain a cornerstone of Audi’s strategy for at least another ten years, he confirmed.
New production timeline stretches into mid-2030s
Dollner outlined plans to continue manufacturing gasoline-powered vehicles through 2035 and potentially beyond. The upcoming model range launching through 2026 will provide the company with the operational flexibility needed to maintain thermal engine sales for “another seven, eight, maybe even ten years.”
The German executive left the door open for extensions well past the mid-2030s, noting that market demands will ultimately dictate the final timeline. (It’s refreshing to see an automaker actually listening to what customers want, isn’t it?)
This pragmatic approach represents a stark contrast to the ambitious electrification goals set under previous leadership. While Markus Duesmann had championed the earlier aggressive timeline, Dollner’s appointment as CEO in September 2023 appears to have ushered in a more realistic assessment of market conditions.
Current electric vehicle performance shows mixed results
Despite discontinuing the Q8 E-Tron due to disappointing sales figures and closing its associated production facility, Audi’s remaining electric vehicles are showing signs of recovery. First-quarter 2025 deliveries of battery-electric vehicles jumped 30.1% year-over-year, reaching 46,371 units.
However, the competitive landscape remains challenging. BMW nearly doubled its EV sales during the same period, while Mercedes trails slightly behind Audi’s performance. The race for electric luxury dominance is far from over.
To strengthen its electric portfolio, Audi plans to introduce an entry-level model in the A3 segment, positioned as a more affordable alternative to the Q4 E-Tron. This strategic move aims to broaden EV adoption among price-conscious buyers.
Thermal engines remain integral to future lineup
Recent introductions of new-generation A5, A6, and Q3 models demonstrate that internal combustion technology remains a fundamental pillar of Audi’s product strategy. The performance-oriented S and RS variants, featuring high-output gasoline engines, will continue utilizing traditional powertrains for years to come.
Why the extended commitment to gasoline? Market uncertainty plays a significant role. European Union regulations targeting a ban on new ICE vehicle sales by 2035 remain in flux, creating planning challenges for automakers. If the legislation stands as written, Audi might halt thermal engine production for EU markets while continuing manufacturing for regions with more flexible regulatory frameworks.
Industry-wide reassessment of electric timelines
Audi isn’t alone in reassessing its electrification strategy. Mercedes had previously announced intentions to become exclusively electric in certain markets by 2030, but the Stuttgart-based automaker has also begun walking back those commitments.
Among Germany’s three major luxury brands, only BMW never established an official end date for internal combustion engines. The Munich-based company has consistently emphasized customer choice while highlighting persistent gaps in charging infrastructure development.
The reality check happening across the German automotive industry reflects broader market dynamics. Consumer adoption of electric vehicles continues at a measured pace, influenced by factors including charging availability, purchase prices, and range anxiety. Automakers are responding by maintaining flexibility in their powertrain strategies rather than committing to rigid electrification deadlines.
For American buyers, this means continued access to Audi’s refined gasoline powertrains well into the next decade, alongside an expanding selection of electric alternatives. The choice, it seems, will remain in consumers’ hands for years to come.
