Like its parent company, Audi is reportedly planning to invest heavily in electric vehicles as it pivots away from diesel cars.
In 2015, Audi sold about 1.8 million vehicles worldwide. Assuming flat sales, the company is hoping to sell at least 450,000 EVs per annum by 2025.
To get there, the brand will invest, in the coming years, roughly a third of its research and development budget in electric car, autonomous vehicle and digital services technology. Last year, Audi's R&D budget was 4.2 billion euros ($6.2 billion).
In order to free up funds for its EV push, Audi will reportedly cut back on country-specific variations for its engine and transmission offerings.
Later this week, Rupert Stadler, Audi's CEO, will provide an outline of the brand's latest roadmap to a closed door meeting with around 2000 of the marque's managers.
Audi already has already detailed plans to introduce an all-electric crossover, likely to be badged as the Q6.
Above: Engine bay of the Audi A3 e-tron PHEV.
According to the European Automobile Manufacturers Association (ACEA), in 2015 just over 186,000 EVs and 234,000 hybrids were sold in Europe, out of total new car sales of 14.2 million across the EU.
That means that EVs accounted for just 1.3 percent of the market, while 1.6 percent of vehicles sold across in the EU were hybrids.
Sales of cars with partially or fully electric drivetrains are expected to grow, thanks in part to government incentives. In May of this year, the German government started a subsidy program for EVs and PHEVs priced under 60,000 euros ($87,000).
German buyers are now entitled to a 4000 euro ($5800) rebate on pure electric cars, and 3000 euros ($4400) for plug-in hybrids.
An earlier incentive plan in Norway was met with great success. There, EVs are exempt from sales tax and the value added tax (VAT), and also enjoyed bus lane access, tax concessions and reduced annual registration fees.
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