Audi pins 2026 for shift to all-electric vehicles

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Audi is planning to phase out the use of traditional combustion engines by 2026, according to board chairman Markus Duesmann, who addressed a panel of labour representatives and company officials on May 17.

The automaker will continue to release one new brand of electric vehicle every year until that date, after which no new existing or new combustion models will enter production. It is likely hybrid vehicles will also fall under this category, though this has not been confirmed.

Read more: VW CEO Diess expects significant market upturn for 2021

The brand, which is currently a subsidiary of Volkswagen - whic has also pledged goals towards electrification - is set to become the first company in Germany to ban the use of petrol and diesel in its manufacturing chain.

Audi's new goals put itself squarely in line with VW's ambitions, which were originally laid out in 2019.

All cars released after 2026 will be battery-electric, however, any combustion engine cars bought prior to that date will be permitted to run out the rest of their lifecycles.

The automaker revealed in March its intent to cease the production of new internal combustion engines, marking its wholesale shift towards greener engines.

This sets it apart from its major domestic competitors, BMW and Mercedes-Benz, which offer EVs but see combustion engines as a staple of the automotive industry for years to come.

It also marks a significant trajectory change for Audi, whose former CEO is still embroiled in the Dieselgate scandal from 2015, where cars were fitted with technology to allow them to cheat emissions tests.

In late March, Audi's parent company VW sued former CEO Martin Winterkorn and former Audi boss Rupert Stadler for damages over the dieselgate scandal.

Read more: Volkswagen sues ex-CEOs for breaching "duty of care" over Dieselgate

In recent years, however, all companies under the VW label have been frontrunners in the European push for electrification. 

The automaker has claimed it will push for one new EV model every year until 2030 when it hopes EVs will account for 70% of its sales.

Several Audi models, such as the A4 and A6 will likely be the last to make the shift to electrification, representing the end of their natural lifespans.

The Audi A1, however, is reportedly destined for the chop to avoid conflicting with other models - the VW Polo, Skoda Fabia, Seat Ibiza - all produced by Volkswagen Group.

The switch to electrification has not been free of issues, however.

The ongoing semiconductor shortage caused a number of key automakers, including VW, to cut production earlier in the year.

VW even sought to claim damages over the ordeal with some of its chip suppliers.

Current estimates predict the semiconductor shortage may last into 2022, although a number of the top suppliers claim they may be able to catch up to demand during the summer period.

Read more: UK gigafactory infrastructure leaves 95GWh shortfall, research suggests

The shortage has lead to a number of governments and the private sector crank up domestic production of semiconductors to bolster their supply chains.

Northvolt, Stellantis, Nissan and Tesla have all commenced construction of, or are set to get involved in, the production of battery megafactories and gigafactories to help beat the crisis, and last month Bosch opened a chipmaking plant in Dresden, Germany.


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