Audi Confirms Continued Production of Combustion Engines Beyond 2033 Amid Flexible Electrification Strategy

Audi has confirmed that it will continue producing internal combustion engine (ICE) vehicles beyond 2033, marking a shift towards a more flexible electrification strategy. This follows the company’s March announcement outlining a major strategic pivot to maintain a diversified portfolio comprising ICEs, plug-in hybrids (PHEVs), and electric vehicles (EVs).

In a recent interview with Autocar, Audi CEO Gernot Döllner elaborated on the revised approach, noting that varying levels of EV infrastructure and customer readiness worldwide necessitate a pragmatic rollout. “We are not phasing out combustion engines yet,” Döllner said, emphasising that ICEs and hybrids will remain critical during the transition to electrification.

This interview builds on comments from Audi’s March 2025 Annual Media Conference, where Döllner discussed supporting the “challenging transition to electric mobility.” Audi announced an investment of EUR 8 billion (USD 9.2 billion) in its German facilities at Ingolstadt and Neckarsulm to enable parallel development of next-generation electric, hybrid, and combustion vehicles.

As part of its 2025 model initiative, Audi plans to introduce 10 new plug-in hybrid models by year-end, including a PHEV variant of the Audi A5. The company will also launch new combustion-engine models such as the Audi A6 Avant and Q3, ensuring customers have varied options during the industry’s transformation.

Audi’s ICE and hybrid strategy is tailored to regional market needs. In China, where combustion engines remain dominant, the company is expanding through partnerships with FAW and SAIC. In North America, Audi plans to introduce 10 new models by the end of 2026 and is evaluating local production to strengthen supply chain resilience.

Although Audi remains committed to full electrification in the long term, it acknowledges the transition will be gradual. Future EVs will be built on the Volkswagen Group’s Scalable Systems Platform (SSP), expected to debut between 2027 and 2028.

With this strategic adjustment, Audi aligns with other premium automakers like BMW and Mercedes-Benz, recalibrating their electrification timelines to better match global market demand.

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