Volkswagen and Audi extend the life of gasoline engines in Europe

  • Volkswagen and Audi reconsider their electric strategy in the face of falling sales of its electric cars and possible regulatory changes in the EU.
  • Investments will be made in improvements to gasoline engines, prolonging its use in the European market.
  • Plug-in hybrids gain ground, with plans for all combustion models to include a PHEV option.
  • Volkswagen Group to announce new strategy electrification in March 2025.

Car manufacturers Volkswagen y Audi have decided to rethink their electrification strategies in Europe. A new report suggests that both companies are considering extending the time their combustion models will remain on the market. Falling demand for electric vehicles and the possibility of changes in European Union regulations could have motivated this adjustment in their plans.

According to the German media Reuters, the Volkswagen Group is considering carrying out significant technological improvements in its gasoline engines, in order to keep them competitive in terms of efficiency and emissionsFaced with an uncertain outlook, the company is seeking greater flexibility in its transition to electric mobility.

A slowdown in electric car adoption…

Recent sales data reflects a Slowdown in the expansion of the electric vehicle market. In 2024, Volkswagen delivered 2,7% fewer cars, while Audi experienced an even larger drop of 7,8%. This trend has led both brands to reflect on the viability of relying exclusively on electrification in the short and medium term.

Speaking to Top Gear, Audi CEO Gernot Döllner acknowledged that Electrification remains the ultimate goal, but warned that the company must be prepared to adapt to market conditions. “The growth of electric cars has slowed, although it continues to advance,” he said, adding that the planning of the models must be adjusted to seven-year production cycles.

Plug-in hybrids as an intermediate alternative…

Volkswagen Tiguan 2024 design

Faced with the slower pace of adoption of electric vehicles in Europe, Audi has decided betting on plug-in hybrid technology (PHEV). Döllner announced that all future models with ICE combustion engines will have a PHEV variant, to ensure that they comply with environmental requirements.

“We thought plug-in hybrids would only be a bridging technology, but this bridge is turning out to be longer than expected,” said Audi’s CEO. This change of focus shows that the brand is looking to combine electrification with traditional engines to better adapt to consumer demand.

A possible change in European regulation…

European Union Flag - PSA Group - FCA Group

The European Union is currently sticking to its roadmap to ban the sale of petrol and diesel cars by 2035. However, some countries and industry groups have proposed reconsidering these deadlines, which could give Volkswagen and Audi room to keep your internal combustion range active for longerThe group's new strategy will be officially unveiled in March 2025, when significant adjustments to its electrification plan are expected to be announced.

Volkswagen and Audi are not the only brands reconsidering their electric plans. Porsche recently admitted that its initial goals were too ambitious. and that its transition will depend largely on the evolution of technology and market acceptance. Other rival companies, such as BMW o Mercedes-Benz, have reaffirmed their commitment to combustion, highlighting that electrification will be a gradual and not immediate process.

With this change in strategy, Volkswagen and Audi seek maintain its competitiveness in the European market offering options that combine improved traditional engines with partial electrification. The key will be to observe how regulation and demand evolve in the coming years to adjust their production plans.

Source - Top Gear Reuters

Images | Audi – Volkswagen


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