Audi to stop making fossil fuel cars by 2033; will launch only electric models from 2026

German luxury carmaker Audi has decided to stop manufacturing diesel and petrol cars by 2033, moving along the industry-wide pivot towards more environment-friendly electric cars. Speaking of the decision, CEO Markus Duesmann said, "Audi is ready to make its decisive and powerful move into the electric age.”

Starting 2026, Audi plans to only launch all-electric car models, while gradually phasing out the production of internal combustion engines until 2033. However, owing to the strong demand for the vehicle in China, Audi's local partners there would continue to manufacture combustion engine cars beyond 2033, he added.

Carmakers around the globe have been investing large sums into shifting towards battery-powered vehicles as they tout green credentials in a world that is growing more concerned about climate change. The transition has fastened in Europe, given the touch of EU pollution regulations and the "dieselgate" emissions cheating scandal uncovered at Volkswagen in 2015.

Duesmann said Audi is already launching more new electric models than diesel or petrol models this year. By 2025, the four-ring brand aims to have more than 20 e-models in its line-up. He added that Audi would keep working to improve its internal combustion engines until the end to ensure greater efficiency. "Audi's last internal combustion engine will be the best we've ever built," the CEO said.

Audi plans to dominate global e-car market

Earlier this year, Audi parent company Volkswagen announced an e-offensive, saying it would spend 46 billion euros over the next five years to dominate the global electric car market. The 12-brand group has vowed to set up six battery factories in Europe by 2030 as part of the push, in order to reduce reliance on Asian suppliers for the key component in electric cars.

Audi's announcement comes as car manufacturers around the globe are vowing to go electric over the years. China's largest state-owned automakers BAIC, as well as Britain's Jaguar have announced to phase out sales of petrol vehicles by 2025. Sweden's Volvo plans to sell only electric models from 2030, followed by US giant General Motors from 2035.

Mercedes-Benz maker Daimler plans to phase out internal combustion engines by 2039, while German rival Volkswagen has targeted the year 2040. Meanwhile, electric car pioneer Tesla is building a "gigafactory" near Berlin, aiming to produce around 500,000 vehicles a year initially.