Audi says its “technology agnostic” approach to powertrains makes the company confident of meeting Australia’s New Vehicle Efficiency Standard (NVES) and other automotive emissions laws around the world – including more lax regulations in the US.
In conversation with Daily Sparkz Speaking at the 2026 Formula 1 Australian Grand Prix, Audi global sales chief and board member Marco Schubert said the German automaker was confident of meeting emissions laws worldwide because it had flexibility in its future model ranges.
Audi has abandoned its previous commitment to sell only electric vehicles (EVs) by 2033 and is instead expanding its hybrid model range for key markets such as the US and Australia, where Schubert says customer demand – rather than emissions laws – will continue to determine the drive mix.
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“We remain open to technology because in the end the customer decides: Is it (emissions laws) good for the company or is it good for the customer? The customer decides which car to drive,” said Schubert.
Audi Australia currently offers petrol, diesel, petrol-electric hybrid and battery-electric models here and has no short-term plans to ax specific powertrains to comply with the NVES.
Australia’s first mandatory emissions regulations for new vehicles were introduced in January 2025. They require new cars and light commercial vehicles to meet certain tailpipe CO2 emissions limits, which will be reduced annually until 2029.
The need for flexibility is further reinforced by the Australian Federal Government’s review of tax incentives for electric vehicle buyers and the removal of federal tax relief and incentives for electric vehicle buyers in the US at the end of September last year.
“We have to look at where customer demand is and we have to respond to that,” said the Audi sales boss.
“We have expanded our range of internal combustion engines well into the 2030s – we have expanded it for the next round to refresh the cars and keep them running,” Schubert said.
“This is something that obviously impacts our entire product portfolio.”
The Audi sales boss said the premium car brand’s diverse product range, which will increasingly include hybrid models, gave him confidence in its ability to comply with Australia’s NVES legislation.
This confidence comes from Audi’s need to be prepared for major regulatory changes in larger markets such as Europe and the US.
“In the world, the USA is the only market that is completely out of control – and as you know, they have also ruined everything when it comes to climate goals.
“The change in the law there has brought demand (for electric vehicles) to a complete standstill. California is one of the big states where there is still some demand – we have to adapt to that.”
Despite backtracking on previous plans, Audi is still rolling out electric vehicles, including a production version of its Concept C sports car – a new flagship electric hardtop convertible that will introduce a new design language for the brand – which is due to launch in Europe next year but has not yet been confirmed for Australia.
The European Union’s requirement that all new vehicles sold from 2035 must be emission-free was also adjusted and a reduction from 100 percent of all vehicle sales to 90 percent was proposed instead.
The easing of the effective ban on sales of internal combustion engine vehicles in Europe over the next decade leaves the door open for further sales of hybrid vehicles and is in line with calls from local car brands, including market leader Toyota, for changes to Australia’s NVES.
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