Audi Lowers Pace of Electrification: 2033 Deadline to Phase Out Combustion Engines Becomes Flexible

Audi has made a significant “tone adjustment” to its electrification strategy.

In a newly released statement in Chinese, Audi affirmed its continued commitment to the transition toward electrification. However, it also acknowledged that markets around the world are progressing at different paces. As a result, over the next few years, the company will maintain a flexible approach by offering a diverse powertrain portfolio—including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and internal combustion engine (ICE) models—to ensure a smoother transition.

Audi's statement on its electrification strategy, detailing its flexible approach to powertrain offerings, including BEVs, PHEVs, and ICE models. — Audi’s statement about its electrification strategy

This represents a departure from Audi’s previously ambitious goals. According to its original plan, Audi would stop launching new combustion engine vehicles by 2026 and completely end ICE vehicle sales by 2033.

However, according to a report by British media outlet Autocar, Audi’s global CEO Gernot Döllner has confirmed that the 2033 phase-out timeline is no longer binding. The company will now adjust its product strategy dynamically based on market demand and will retain the right to develop and sell ICE models until 2035—or possibly even later.

A side view of a modern Audi SUV parked outside a contemporary building, showcasing its sleek design and sporty features. — Audi all-new Q3

The easing of this deadline comes amid a clear cooling of the global electric vehicle (EV) market.

In its statement, Audi directly acknowledged that the electrification “inflection point” in the North American market has been noticeably delayed. Even in China—the world’s leading new energy vehicle (NEV) market—the growth momentum is gradually stabilizing.

Data shows that since the second half of 2024, China’s monthly retail penetration rate of new energy passenger vehicles has remained around 50%. While this figure is high, the rate of growth has noticeably slowed.

A manufacturing facility showcasing partially assembled electric vehicles on production lines. — China NEV

Some industry insiders believe that this ~50% share might represent a “bottleneck zone” in NEV development, marking a turning point in the era of rapid expansion for battery electric vehicles.

Among Germany’s three major luxury automakers, BMW is the only one that has not announced a definitive phase-out date for combustion engines. In contrast, Audi and Mercedes-Benz previously adopted more aggressive electrification timelines. Now, they too are beginning to realize that the timeline required for this transformation may be much longer than initially expected.