Audi: 'Electric cars alone are difficult'... Keeping internal combustion engines for 10 years

German premium brand Audi has officially postponed its previously announced plan to 'end production of internal combustion engine vehicles by 2033', confirming that it will continue to produce internal combustion engine and hybrid models for the next ten years. This follows a preliminary announcement made in March and effectively solidifies the decision.

Gernot Döllner, Chief Executive Officer (CEO) of Audi, revealed in a recent interview with the media that, based on the internal combustion engine and plug-in hybrid (PHEV) line-up launched between 2024 and 2026, the company will respond to market conditions over the next seven to up to ten years or more. This marks a significant shift from Audi's previous electrification roadmap, which had planned to cease all development of new internal combustion engine vehicles from 2026 and transform into a pure electric vehicle brand. The change is interpreted as Audi adjusting its pace to ensure survival amidst evolving market dynamics.

The electric vehicle (EV) chasm is not unrelated to Audi's latest move. Just a few years ago, numerous automotive brands rushed to declare an 'all-in on EVs' in line with climate change regulations, but many are now facing serious headwinds. Mercedes-Benz, which had aimed to achieve a 100% EV transition by 2030 in line with market conditions, has revised its targets amid sluggish EV sales and is reinvesting billions of euros to extend the lifespan of its internal combustion engine and hybrid models. The Volkswagen Group has also put plans for new EV-dedicated factories on hold or reduced utilisation rates, focusing instead on consolidation. Volvo and Porsche, once among the most aggressive in pursuing electrification, have delayed their full electrification timelines and pivoted towards diversifying their line-ups flexibly in response to market demand. Notably, Porsche has acknowledged the adverse effects of its overambitious push for full electrification, announcing that it will reintroduce internal combustion engines into some models originally developed as pure EVs.

The reason behind such sweeping strategic revisions by numerous manufacturers is that overly optimistic electrification forecasts have collided with practical limitations—high vehicle prices, still-inadequate charging infrastructure, and reduced government subsidies—threatening profitability.

Meanwhile, hybrid vehicles are filling the gap left by the slowing EV market. Hyundai Motor Group, which had aggressively invested in positioning itself as a global electrification leader with its dedicated EV platform (E-GMP), is also responding to recent market changes. While maintaining its original plan to expand its EV line-up, Hyundai is now placing hybrid models—currently enjoying global popularity—at the forefront as core products to drive performance.

The reason manufacturers are eyeing the hybrid market is that many consumers have grown weary of the inconvenience of charging EVs and the decline in battery efficiency during winter, and are turning to hybrids, which combine the familiarity of internal combustion engines with the efficiency of high fuel economy.

As a result, hybrids and plug-in hybrids are filling the void left by the slower-than-expected electrification market, establishing themselves as the mainstream. Audi's decision to mention flexibility over the next ten years and to reinvest heavily in the development of internal combustion engines and high-performance hybrids stems from analysis that pushing ahead with aggressive electrification without securing short-term profitability could threaten the brand's very existence.