Volkswagen and Audi may extend combustion engine production as EV sales decline in Europe.
Volkswagen Group brands, including Porsche and Bentley, are delaying full electrification plans amid weak EV demand.
The EU’s 2035 zero-emissions rule allows synthetic fuels, but widespread ICE alternatives remain uncertain.
Volkswagen and Audi are reportedly reconsidering their timeline for transitioning to electric vehicles (EVs) in Europe. According to a report from German business newspaper both brands plan to extend the life cycle of their internal combustion engine (ICE) models, following a decline in EV sales.
In 2024, Volkswagen’s EV sales declined by 2.7%, while Audi saw a larger drop of 7.8%. Across the entire Volkswagen Group, deliveries of zero-emission models fell by 3.4%. In response to weaker demand, both brands are expected to invest in facelifts of existing ICE models, potentially delaying their transition to all-electric lineups.
Volkswagen Considering Production of Audi and Porsche Models in the US
Volkswagen originally planned to sell only EVs in Europe by 2033, with Audi setting the same goal for its global market. However, Audi CEO Gernot Döllner has stated the brand remains “flexible” regarding this timeline. Volkswagen’s head of technical development, Kai Grünitz, has also suggested that the MK8 Golf could remain on sale until the mid-2030s, even as the fully electric Golf Mk9 is introduced later this decade.
A final decision on further investments in combustion engines is expected in early March, Any changes in strategy at VW and Audi could also impact sister brands Skoda, SEAT, and Cupra.
Other Volkswagen Group brands have already adjusted their electrification plans in response to market conditions. Porsche, for example, saw a sharp 49% drop in Taycan sales in 2024, prompting a reassessment of its strategy. The brand has now decided to reintroduce internal combustion engines into some future models originally planned as EVs.
Bentley has also revised its electrification roadmap. The British luxury brand has delayed the launch of its first EV from 2025 to 2026 and extended its goal of becoming an all-electric brand from 2030 to 2035. Similarly, Lamborghini has postponed the debut of its first EV, the Lanzador, from 2028 to 2029. The next-generation Urus SUV is still set to be fully electric, but the company will continue producing gasoline-powered models such as the V12 Revuelto and V8 Temerario into the early 2030s.
Bugatti Rimac, now controlled by Rimac Group and Porsche, will not introduce its first EV this decade. The hypercar brand had originally planned to replace the W16-powered Chiron with an electric model under Volkswagen Group ownership, but those plans have changed following the shift in management.
The European Union’s 2035 ban on combustion engine vehicle sales will not prohibit all ICE technology but will require zero harmful emissions. This leaves room for synthetic fuels and hydrogen, though widespread adoption of these alternatives remains uncertain.
According to the European Automobile Manufacturers’ Association (ACEA), the market share of EVs in the EU dropped by 1% to 13.6% in 2024. If demand for EVs does not increase, automakers will surely push for regulatory adjustments as they have in other markets.
Source: Handelsblatt
