Audi Pushes Back Full Electrification, Continuing Combustion Engine Models Longer Than Planned

The idea of a fully electric future for cars sounded inevitable, but reality is proving more complex. Audi is the latest brand to rethink its timeline, announcing that it will continue offering combustion engine models for longer than originally planned. 

During Audi’s Annual Media Conference for 2025, CEO Gernot Döllner stated, “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.”

Audi originally planned for the next-gen Q7 to be its final combustion-powered model, ending ICE development by 2026 and phasing out those vehicles by 2032. However, that timeline now seems uncertain. CEO Gernot Döllner’s latest remarks suggest Audi is following in the footsteps of BMW, Mercedes, and Volvo by slowing its EV transition. 

At the same conference, Döllner teased some exciting new models for 2025. He confirmed the new generation of the Q3 will launch this summer, and after the recent A6 Avant release, a plug-in hybrid version of the A5 will debut on March 25. Audi plans to introduce 10 new PHEVs this year, positioning them as a key part of the brand’s strategy as they move toward an all-electric future.

In North America, Audi will roll out 10 new models by the end of 2025. Audi is also exploring different ways to localize production in response to the US government’s new tariffs, aiming to stay competitive in a shifting market. Meanwhile, in China, Audi is ramping up its product strategy with FAW and SAIC to tap into the growing electric car market while continuing to play a strong role in the combustion engine business.

Audi knows the road ahead won’t be easy. CFO Jürgen Rittersberger called 2025 a “very challenging year,” pointing to the global tensions and economic uncertainty from 2024. Even so, he’s hopeful their revamped lineup will keep things moving, with new models gradually making their way to market.