Audi says its ‘technology agnostic’ approach to powertrains makes it confident of meeting Australia’s New Vehicle Efficiency Standard (NVES) and other automotive emissions legislation around the world – including more lax regulations in the US.
Speaking to CarExpert at the 2026 Australian Formula 1 Grand Prix, Audi’s global sales chief and board member Marco Schubert said the German automaker was confident of meeting emissions laws globally, as it has flexibility across its future model lines.
Audi has pulled back on its previous commitment to sell only electric vehicles (EVs) by the year 2033, and is instead expanding its hybrid model ranges for key markets such as the US and Australia, where Mr Schubert said customer demand – not emissions laws – will continue to dictate its powertrain mix.
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“We remain open for technology, because at the end of the day the customer decides – so will it [emissions laws] be good for the company or is it good for the customer? The customer will decide which car he/she is driving,” Mr Schubert said.
Audi Australia currently offers petrol, diesel, petrol-electric hybrid and battery-electric models here, and has no short-term plans to axe any specific powertrains to meet the NVES.
Australia’s first mandatory new-vehicle emissions regulations were introduced in January 2025, requiring new cars and light commercial vehicles to meet specific tailpipe CO2 emissions limits which will be lowered annually until 2029.
Adding to the need for flexibility is the Australian federal government’s review of tax incentives for EV buyers, and the dropping of federal tax breaks and incentives for EV buyers in the US at the end of September last year.
“We need to look where customer demand is sitting and we need to cater for this,” the Audi sales boss said.
“We extended our combustion engine range far into the 2030s now – we extended it for the next round so that we are freshening up the cars and keeping them running,” Mr Schubert said.
“That’s something that is obviously influencing our overall product portfolio.”
The Audi sales boss said the premium auto brand’s varied product range, which will increasingly see hybrid models spread across its lineup, has him confident of meeting Australia’s NVES legislation.
That confidence stems from Audi having to be ready to meet bigger regulatory changes in larger markets such as Europe and the US.
“On a global scale, the US is the only market who went totally off – and as you know, also in terms of climate targets, they’ve killed everything.
“The change of legislation there, demand [for EVs] totally stopped. California is one of the big states where you still have some demand – we need to adjust to it.”
Despite the pullback of its previous plans, Audi is still introducing EVs including a production version of its Concept C sports car – a new electric hard-top convertible flagship that will introduce a fresh design language for the brand – which is due for release in Europe next year but is yet to be confirmed for Australia.
The European Union’s mandate for all new vehicles sold from 2035 onwards to be zero-emissions has also been tweaked, with a proposed reduction from 100 per cent of all vehicle sales to 90 per cent instead.
The relaxation of Europe’s effective ban on combustion-powered vehicle sales within the next decade leaves the door open for hybrids to continue on sale, and is in line with calls for changes to Australia’s NVES by local auto brands including market leader Toyota.
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