Audi sticks to ambitious electric vehicle goals despite bumpy market

German automaker Audi will stick to its EV goals despite manufacturing and economic challenges, its CEO has said. 

The firm, a luxury subsidiary of the Volkswagen Group, says it maintains its goal of bringing the last of its combustion engine vehicles to market in 2026, before switching fully to manufacturing EV models. It also says it hopes to make as much profit on EV sales as combustion engines by 2030. 

"Despite the recent public debate, there is no doubt the future of the car is electric. At Audi, we will electrify all core segments by 2027 and have defined a fully electric target portfolio," said CEO Gernot Dollner.

"The 50 percent increase in electric vehicles delivered in 2023 confirms our path toward electric mobility," he added. 

The news came following the company's annual press conference, where it reported "a solid result in the 2023 fiscal year under challenging economic conditions," with revenue rising by 13.1 percent to $75.88 billion and an operating profit of $6.84 billion, with an operating margin of 9 percent. 

Audi says it expects sales to fall from $75.88 billion to $68.39-73.82 billion in 2024.

All-new Q6

Audi has warned 2024 could be a bumpy ride, as it unveils the new all-electric Q6 etron model. Traditionally, bringing a new model to market can lead to lower sales volumes of existing models as the market prepares for the arrival of a newer make. 

The new Q6 - which is priced from $81,315 and was jointly developed with fellow Volkswagen stable-mate Porsche - is expected to hit showrooms in the second half of 2024, after a two-year delay. A new electric A6 and petrol versions of the A5 and Q5 will also hit the market this year. 

"(This) transitional period will require starting off with highly efficient combustion-engine models and plug-in hybrids," said Dollner. "With the models that are coming now, we are well positioned and able to actively respond to a range of customer requirements."

China expansion

The new Q6 model will be built at the company's factory in Ingolstadt, Germany. However, the firm has signaled it hopes to start production of the same model at Audi's new electric car factory in Changchun, China.

"The Audi agenda focuses on three key areas in product, technology, and brand positioning, as well as on a plan for the crucial markets of China and North America," said Dollner. 

Audi has also signaled it will develop and build a new model in southern China with its Chinese partner SAIC.

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