In a context of tougher European standards on CO₂ emissions, Audi is announcing a price increase for its thermal models from next December, in order to compensate for possible penalties. At the same time, the brand's electric models, such as the new A6 and the Q6, should benefit from more attractive discounts to boost sales.
Price increase for thermals, boost for electrics
In the wake of Volkswagen, Audi adjusts its pricing policy for its thermal vehicles. The cause? European CO₂ standards, which, from 2025, will impose a drastic threshold of 93.6 g/km of average emissions per manufacturer. This target imposes on the German manufacturer a policy of adjusting its average emissions, otherwise the brand could end up with colossal fines. Each gram of CO₂ above this threshold will cost 95 euros per vehicle. For a brand like Audi, whose often powerful models easily exceed the average fleet emissions of small vehicle manufacturers, the amounts of penalties could amount to hundreds of millions of euros per year !
In order to anticipate this deadline, Audi will increase the prices of some of its thermal models from December 10, says Auto Motor und Sport. On average, prices will increase by 2%an increase which aims to partially offset the cost of potential penalties and to maintain margins. “The objective is clear: to balance the balance between costs and regulatory requirements without compromising competitiveness”specifies a source close to the manufacturer. The price increases also occur in a delicate financial context for the brand, with profits down sharply in the third quarter of 2024.
This situation pushes Audi to make clear-cut decisions to anticipate the impact of the new standards. On the other hand, on the electric vehicle side, the strategy seems to take another turn.
An ambitious electric strategy: incentives at stake?
As CO₂ standards require drastic efforts for 2025, Audi is increasingly turning to electric vehicles to reduce its average fleet emissions. However, despite the enthusiasm for electric vehicles in Europe, the market is showing signs of running out of steam. Sales are stagnating, charging infrastructures are developing at a pace that is still insufficient to convince the general public, and concerns about battery life remain relevant. To remedy this, Audi could well adopt a policy of reinforced discounts on its electric models. The recent electric A6 and Q6 are likely to see their prices adjusted to attract a wider customer base and compensate for the drop in demand. Moreover, the first discounts have already been observed on certain models such as the Q4 and this could intensify in the months to come.
For Audi, this orientation is doubly beneficial: it not only aims to stimulate the sale of electric vehicles, but also to reduce the share of thermal vehicles in its rangewhich will make it possible to reduce the average emissions of its fleet and get closer to the imposed thresholds. The new EU CO₂ directives place all manufacturers in a complex situation. While some brands, like Audi, choose to increase prices to compensate, others rely on reducing thermal ranges. In fact, manufacturers are being pushed to accelerate their transition to electric.
Although the Ingolstadt manufacturer has focused on efficient and well-equipped electric models, the task is not simple. Faced with rivals like Tesla, and the rise of Chinese brands, capable of offering competitive electric vehicles at sometimes more accessible prices, Audi must find the right balance between brand image, profitability and regulatory compliance.
