Audi has become the latest European car manufacturer to backtrack on its plans to go electric-only.

Previously the firm indicated that it would launch its last internal combustion-engined (ICE) models in 2026, before phasing them out completely around 2032.

Although that plan may still hold for markets such as Europe, where new ICE vehicle sales are set to be banned from 2035, it appears the Ingolstadt-based carmaker is rethinking its plans for other markets.

Speaking at the Audi AG Annual Media Conference this week, CEO Gernot Döllner implied that the company was still very much committed to ICE models.

“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,” Döllner said.

“We will manage the production of our last combustion engine vehicles depending on the various developments in the world markets.”

He added that the 10 new plug-in hybrid models that the company plans to have launched by the end of this year would play a central role in the company’s move towards an all-electric range.

Audi announced earlier this week that it planned to cut one eighth of its workforce as a result of the “immense challenges” that it faces at present.

Audi’s global sales slid by 12% in 2024, with the German carmaker losing third place to Tesla in the premium vehicle rankings.

Audi said the job cuts, which will affect around 7,500 employees, were aimed at boosting productivity, speed and flexibility at its German factories.

"The economic conditions are becoming increasingly tougher, competitive pressure and political uncertainties are presenting the company with immense challenges," the company said.

Audi's future plans, upmarket move

To counter the slide, Audi plans to invest in another entry-level electric vehicle as well, and will also bolster the artificial intelligence technologies in its cars, AFP reported.

Besides the new entry EV, the carmaker is planning a move upmarket, with an increased presence in the larger segments, Audi UK boss Jose Miguel Aparicio revealed to Auto Express recently.

“That means a significant increase in price, and in order to do it successfully we really need to create this brand attraction and desire,” Aparicio said.

“The essence for this is product innovation, but we also have to offer a premium customer experience to them; we are talking about making an evolution, moving upwards.”

IOL