Audi revises electric vehicle plans due to slow sales

Audi is reconsidering its plans to fully switch to electric vehicles (EVs) by 2032. In 2021, the company announced its goal to stop selling gasoline cars by that year. However, CEO Gernot Döllner revealed that the transition is taking longer than expected during a conference about 2024 sales results. Demand for Audi's EVs fell by 19.5 percent in 2024, with 158,343 units sold. The company blames a tough market, increased competition, and lower interest in fully electric cars. In contrast, rival BMW saw an increase in EV sales by 11.6 percent, beating Audi and Mercedes combined in electric vehicle sales. Audi is shifting its strategy and will continue offering petrol-powered cars. They have already released new models such as the A5 and the Q5. Upcoming models include the next-generation Q3 compact crossover and possibly a new Q7 SUV. Audi is also adapting its diesel engines to meet new regulations but will likely reduce future investments as diesel sales decline. Currently, diesel vehicles only made up 10.4 percent of Audi's sales in Europe last year. The company plans to phase out its smallest cars, the A1 and Q2, after their current models are retired. Audi admits that extending the life of combustion engines could benefit their business, especially since EVs only represented 9.4 percent of total shipments in 2024. Thus, the goal of becoming fully electric by 2032 now seems unrealistic.