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Hybrid engines will replace conventional engines within 15-20 years as governments tighten emission rules and fuel costs escalate, says the boss of Audi.
"We have to bring fuel consumption down," says Audi board chairman Rupert Stadler. "But why should we have to lose vehicle performance at the same time? Electric and internal combustion engines combined are the only answer, for the moment."
Mr Stadler says that within the "next few years" all engines will have turbochargers and reduced engine sizes and cylinder numbers. "There is room to move with fuel efficiency and smaller engines with turbocharging is one answer," he says.
"This downsizing and turbocharging is the first way to reduce fuel consumption and emissions. The next will be more efficient diesels - I think we have a way to go here - and then we'll have plug-in diesels and then, move to electric vehicles. But infrastructure and government regulations may have an impact on how quickly we move to the full electric vehicle stage."
In the short term he says range extender powerplants are the best answer. A fan of Tesla, he nevertheless says Tesla's all-electric drive doesn't have the range to suit US, Chinese and Russian buyers. "It works in Europe but we see many customers in our emerging markets (China and Russia) will be disappointed."
Audi's answer for the short term is the drivetrain as fitted to its Quattro Sport concept.This coupe, which Mr Stadler says is promised for production "in the mid term" and hinting at a 2016 launch, is an example of his "right way to go".
"Plug in hybrids are very efficient," he says. "This is where we differ from Volkswagen. They see the answer in all-electric vehicles and we see plug-in hybrids as our future. Volkswagen make cars for the city where short range is acceptable. Our customers want something different."
"The Quattro Sport is intended to slot in between the existing TT and R8 models and will be priced accordingly. It's our future - a powerful engine with low emissions," he says. "It will operate for about 50km on electric only which means 50km of driving in the city without any emissions."
The reporter is on Twitter: @cg_dowling
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