Audi CEO Gernot Dollner says that faltering EV sales and strong consumer interest in petrol engines will ensure ICE vehicles will endure for another decade yet.

As a result the German manufacturer will approach its powertrain solutions with more flexibility, Dollner told Car And Driver.

Australian new car sales are similar to other developed markets around the world – that is interest in electric vehicles is slowing, and in some instances flattening out completely. The revolution we were told would happen in short order, hasn’t materialised as indicated.

In markets like the United States, the move to EVs has slowed so much that many analysts are prepared to say its on life support. Manufacturers forced into EV development are now faced with a showroom line-up that doesn’t reflect the interest of the buyer, and Audi is adamant that it can deliver what its customers still want.

1

Dollner told Car and Driver that Audi will take a measured approach over the next 10 years, with development cash a critical focus on both how and where it is spent.

“The drivetrain concepts will definitely swing back to internal combustion,” Dollner told Car and Driver. “That’s what we see right now, and I don’t know if battery-electric will come back that fast.”

EV sales in the United States provide a fascinating insight for our market here, with sales growing steadily on the back of federal EV tax credits. The elimination of those credits in 2025 slowed that climb though, leading several manufacturers to pause of cancel EVs previously designed to make their way to the US. With talk about Australia ending its EV incentives, a similar thing could happen here.

The hysteria that follows that logic though, usually revolves around Australia becoming a dumping ground for old, internal combustion technology. Australia, like the US, is an SUV and dual-cab heavy market, vehicles which haven’t been well served by electrification so far. That doesn’t mean though, that we’d be likely to see less electric vehicles make their way here. Dollner said he doesn’t see it that way for the US either.

“Markets are so dynamic, and every market has its speciality,” he said. “So, the US has these rugged SUV and pickup segments, quite ICE-heavy consumer landscape. China is ahead on battery electric, but has a backswing to extend-range and even plug-in hybrid. There are a lot of dynamics, so it isn’t too easy to tell where the road is heading.”

Dollner went on to explain that while EV development will absolutely continue, Audi will continue to hone its current platforms for petrol only and hybrid powertrains.

“I don’t see necessarily new platforms,” he explained. “But I see further development of platforms to bring the next level of electronics and bring some degree of more hybridisation.”