Audi foresees EVs becoming as profitable as gas-powered cars within 2-3 years

Audi foresees EVs becoming as profitable as gas-powered cars within 2-3 years

Audi AG, a luxury car brand owned by German automobile major Volkswagen Group, foresees battery-powered cars becoming as profitable as conventional gas-powered cars within a period of 2-3 years. Audi CEO Markus Duesmann said that the German automobile manufacturer’s decision to make huge investments in EV technologies would result in greater volume production, which would cut costs and increase profitability.

The top executive’s statement/prediction implies that Audi’s existing electric lineup, which includes the Audi e-tron, Audi e-tron Q4, and Audi e-tron GT, aren’t as profitable as their conventional gas-powered counterparts.

For the past few years, Audi as well as its parent firm has been investing heavily in EV space as governments around the globe are pushing producers as well as consumers to shift from conventional internal combustion engines (ICEs) to environment-friendly EVs. The luxury car brand’s electrification plans include decisions launch only new EVs by 2026. However, production of ICEs will come to an end in 2033. It means, the car brand will not produce any new ICE after 2026, but it will continue to sell existing ICEs up to 2033.

In June this year, Duesmann said in a statement, that the company would use its innovative strength to offer sustainable and carbon-neutral mobility alternatives to the masses. He stressed that his company believed in success of technology and innovation; rather than in the success of bans.

Speaking on the topic in the previous interview, he also explained, “At the same time, Audi will significantly expand its range of all-electric models. With the new e-tron GT, RS e-tron GT, Q4 e-tron, and Q4 Sportback e-tron models, Audi is already launching more electric cars than models with combustion engines this year. By 2025, the brand aims to have more than 20 e-models in its lineup”

According to German publication Der Spiegel, Duesmann expects return on car sales to increase from 5.5 per cent to more than 11 per cent by 2025. The expected increase in return on car sales is expected to be made possible by the purchase of premium cars.

The last Audi ICE model is scheduled to be launched sometime in 2025, and luxury car brand aspires to become a purely electric brand within next twelve years. However, it kept a big loophole open for the Chinese market as it expects demand there to continue beyond 2033. Thus, it could continue to offer ICE vehicles there from local production.