Audi has announced in a somewhat depressing revelation that it is seriously considering discontinuing the Q8 e-tron SUV and its coupe-style Sportback sibling. The cause? The same as other automakers, “Audi is witnessing a global decline in customer orders in the electric luxury class.”
This comes after similar announcements from companies like Mercedes and General Motors, the latter of which has announced a multimillion dollar commitment to more ICE powertrain development. Launched in 2018, the Q8 e-tron was the automaker’s first step into the electric vehicle market.
It has done rather well since then, but as Audi has pushed to launch new electric vehicles using the Premium Platform Electric architecture, “the company is now seeing a drop in demand for the Q8 e-tron,” which has led to “a sharp drop in incoming orders.”
Q8: e-tron Retirement Is Likely, But Tough To Achieve
Audi’s Brussels facility produces the Q8 e-tron and Q8 Sportback e-tron in Belgium. This production plant has its own set of difficulties. According to Audi, the plant’s proximity to the city center makes it challenging to modify its layout for a different model line. Additionally, Audi mentions that the Q8 e-tron range may not last long due to hefty logistics expenses.
Because of these reasons, it costs more to produce an automobile in Brussels than it does elsewhere, raising concerns about whether the production facility can stay open at all. The entire workforce may be searching for new jobs if a cost-effective restructuring of the factory cannot be achieved, despite Audi’s efforts to collaborate with the local government and other partners in this regard.
The pressure is felt by other Volkswagen Group stablemates
In the battle to keep up the demand for electric cars, Audi is not alone. Porsche has reportedly slowed down production of the Taycan owing to declining demand, according to sources from Germany. This is particularly intriguing because the Stuttgart-based company recently announced that its most affordable gas versions will soon be phased out.
It’s still risky to rely only on EV vehicles, but at least Audi still offers the combustion-powered Q8 and RS Q8. Audi must be torn between abandoning the project and continuing with the development of the Q8 e-tron replacement.