Another well-known multinational automaker has adjusted its full electrification plan.
According to China Business News, on June 18, Audi's global CEO Gernot Döllner confirmed in an interview with foreign media that the plan made by the previous management had been overturned. Audi has withdrawn its original plan to stop developing and selling internal combustion engine vehicles in 2033, and no longer set a clear termination timetable. "Audi will launch a new series of internal combustion engines and plug-in hybrid vehicles between 2024 and 2026, which will provide us with greater flexibility in the next decade, and then we will see how the market develops." Gernot said.
According to the original plan, Audi will release the last batch of fuel vehicles worldwide in 2026 and achieve full electrification in 2033.
According to Blue Whale News on June 18, Audi responded by saying, "We will continue to be committed to active model matrix maintenance and continue to make our internal combustion engine models attractive to customers after 2026 until the end of their respective product life cycles.
Based on the current plan, we do not rule out other possibilities to ensure that the product portfolio always has the flexibility required by the market, and we will always firmly grasp the long-term goal of the all-electric product portfolio. Our goal is to actively and pragmatically promote the gradual transformation to pure electric travel with a broad and flexible product portfolio covering all drive forms."
Audi also pointed out that Audi firmly believes in the future of electric travel and is committed to achieving the clear long-term goal of a fully electric product lineup; but it also noted that there are obvious differences in the development of global markets. For example, the "inflection point" in North America is currently moving back significantly, while in China, the "inflection point" of the new energy vehicle market (including hybrid models, extended-range models and pure electric models) was reached last year.
"This volatility and diversity of the market requires us to provide a differentiated product portfolio in the next few years in the most flexible and stable way possible, covering pure electric vehicles (BEV), plug-in hybrid vehicles (PHEV) and internal combustion engine (ICE) models. New models developed based on the PPE luxury pure electric platform and the PPC luxury fuel vehicle platform will play a key role in this." In April this year, "We will not only launch new products in the new energy vehicle market to exert our strength, but also continue to lead and steadily advance in the luxury fuel vehicle market." In an interview with the "Daily Economic News" reporter, Godnow, Chairman of the Board of Management of Audi AG, said that in the face of the new era, Audi has formulated a clear strategic blueprint. In order to go further in the competition of the new era, Audi will focus its strategic transformation on two key areas: software-defined cars and advanced driver assistance technology. In the process of responding to the challenges of technological transformation, Audi deeply realized that it must rely on strong partnerships and cooperate with excellent Chinese technology companies to accurately meet the unique needs of the Chinese market. Regarding future product planning, Godnow previously revealed to the "Daily Economic News" reporter that fuel vehicles, hybrid vehicles and pure electric vehicles will jointly constitute Audi's three most important product pillars. "This strategic judgment stems from a deep insight into the global market: there are significant differences in the development stages and consumer needs of different regions. In the Chinese market, we also stick to these three product pillars. In the next decade, Audi will continue to maintain strategic focus." Godnow said.
"With a new generation of pure electric and fuel models, we will actively lead the vigorous development of China's luxury electric travel market and continue to deepen the traditional fuel vehicle market." Godnow said.
In fact, before Audi, Volvo, Mercedes-Benz and other car companies have adjusted their comprehensive electrification plans. Mercedes-Benz announced at the beginning of last year that it would abandon its all-electric vehicle plan and said it would no longer adhere to its original goal of fully switching to electric vehicle sales in major markets by 2030. Since then, Volvo has also stated that it has abandoned its goal of selling only pure electric vehicles by 2030. Due to changes in market conditions and customer demand that is lower than expected, Volvo has adjusted its electrification goal to plug-in hybrid vehicles and pure battery models accounting for at least 90% of its sales by 2030.
At present, multinational automakers are in the pain of electrification transformation, and the revenue and profits of many automakers have shown a downward trend. On the one hand, the electrification transformation requires a lot of R&D investment, and it is difficult for the electrification business to achieve scale effect and profitability in the short term; on the other hand, the global electric vehicle market demand is slowing down, while the fuel vehicle business has higher profits, and car companies need to make strategic adjustments according to the needs of different markets.
According to Jiemian News, Audi's pure electric vehicle deliveries fell by 8% in 2024. In terms of overall sales, Audi was surpassed by Tesla for the first time last year. In 2024, Audi delivered 1,671,218 vehicles worldwide, down 11.8% from 2023.
Against this background, on March 17 this year, Audi's management and the company's union reached an agreement on a layoff plan, confirming that it would cut about 7,500 jobs in Germany by 2029 to reduce costs and improve competitiveness. At the same time, Audi announced that it would invest a total of 8 billion euros in its German factories over the next five years for technological innovation and production line upgrades.
In the Chinese market, Audi chose to cooperate with local car companies and suppliers to promote electric intelligent transformation. At the China Electric Vehicle 100 Forum 2025, Audi China President Luo Yinghan revealed that Audi is integrating China-specific functions and technologies through global technology platforms, such as introducing Huawei's ADS intelligent driving system into the PPC and PPE platforms. Luo Yinghan also said that Audi is quickly following up on the development of high-end pure electric vehicles, leaping to a new level of intelligent high-end products based on Audi's digital platform. "We are creating the next generation of high-end pure electric vehicles by leveraging SAIC's technology platform to enhance Audi's unique characteristics."
