Key Takeaways
- Audi CEO confirms commitment to EV plans, but brand may pivot as needed in evolving landscape.
- EVs currently make up 28% of Audi’s revenue but are still far less profitable than ICE and hybrid models.
- An EV smaller than the Q4 is planned.
Audi CEO Gernot Doellner has confirmed that the luxury automaker will remain committed to its electric vehicle plans, but as things change, the brand may pivot.
Addressing journalists in Audi’s hometown of Ingolstadt, Doellner said Audi would commit to meeting the dates for its electrification goals, even if it achieves them differently than initially planned. The automaker hopes to make as much profit from EVs as combustion-engine cars by the end of the decade, which is a tall order.
At this stage, EVs only comprise 28% of Audi’s total revenue. The remaining 72% comes from ICE cars like the A4 and Q5, which will soon change as the electric lineup expands.
Betting Big On The Electric Future, But Catering To Everyone (For Now)
Earlier this month, Mercedes CEO Ola Kallenius said EV pricing will not be at the same level as ICE vehicles anytime soon, and Audi’s target of achieving this by the end of the decade will not be easily achieved.
By 2033, Audi plans to have a fully electric lineup, but it will cater to everyone for another decade.
“Our vision is quite clear. We’re fully committed to electric mobility, but if there are waves of fluctuations in the transition, we can react to them,” said Doellner. Audi will offer a lineup of battery-electric, plug-in hybrids, and ICE models for at least ten years.
Related
ICE-Powered Audi A8 Sticking Around Until 2027
Due to development delays, the A8’s electric successor won’t be ready for three years, so the existing model has to soldier on.
However, before Audi sees higher sales, the marque anticipates lower numbers due to several new model launches. The new Q6 e-tron and S6 e-tron were unveiled earlier this week, and the VW subsidiary is expected to launch the electric A6 and the ICE-powered A5 and Q5 model lines.
These new Audis will be some of the 20 launches Audi has planned between now and the end of 2025, but it’s worth noting some of these could be facelifted models and not new cars.
Audi Will Have An EV For Nearly Everyone
Audi will soon have an electric vehicle in every segment it competes in, including the compact class positioned beneath the A4 and Q4 e-tron. That means we can expect an A3 e-tron, although it will likely adopt a different name, as Audi EVs will use even numbers. There’s no word on when this will arrive, but Doellner said, “In the medium term, an additional EV below the Q4 will be launched.”
On the financial side, Audi’s cash inflow is expected to fall between $2.71 billion and $3.79 billion in this “transitional year” due to investments in additional new vehicles.
Revenue for the financial year 2024 is expected to sit between (approximately) $68 billion and $74 billion, with a return on sales of 8-10%. Last year’s return on sales reached 9%, but Audi plans to get 14% with an austerity program that will see lower costs and increased sales.
Will Audi pull this feat off when so many companies are pulling back on EV investments? That remains to be seen.
