Electric Audi A6 and S6 cancelled for Australia amid weak demand for EVs above luxury car tax

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Audi Australia has completed its long-running evaluation of whether it should bring the midsize A6 and S6 e-tron electric models to Australia – and it has resolved the question in the negative.

The electric versions of the A6 and S6 luxury sedan and Avant wagon model have been ruled out for Australia – for now – because Audi says demand for EVs above the luxury car tax is simply too weak.

“While we’re incredibly proud of what A6 e-tron represents, our decision not to bring it to market at this time is based on ensuring the right fit for our customers here in Australia,” Jeff Mannering, Audi Australia brand director told Chasing Cars via statement.

Nearly all demand for EVs in Australia is below the luxury car tax threshold

A rival to the BMW i5 and Mercedes-Benz EQE, the Audi A6 e-tron lineup launched in Europe in early 2025 largely in response to demand on that continent shifting towards electric powertrains.

Global EV demand has been affected by disparate currents, including growing European requirements for EVs, a strong shift in China towards Chinese EV brands and the elimination of EV incentives in the United States.

Meanwhile, Australia’s federal EV incentive for leases of new EVs is capped at the luxury car tax ($91,387 plus on-road costs).

This incentive limit has seen close to 100 percent of demand for new EVs in Australia crowd beneath the luxury car tax threshold. 

Key rivals like BMW i5 and Mercedes EQE have been heavily discounted

That has created a torrid situation for BMW and Mercedes-Benz. Retail sources indicate that examples of the i5 (officially priced from $155,900) and the EQE (from $135,200) have both transacted for less than $100,000 driveaway in order to quality for incentives.

While it had seemed that the A6 e-tron would come to Australia – with Audi displaying an example of the luxury EV at this year’s Everything Electric Sydney trade show – the brand is now seeking to avoid the likely loss-making situation faced by its German compatriots.  

“Any enhancement to BEV incentives such as extending them beyond the current luxury car tax threshold would be welcomed, as it would improve the ownership proposition for our customers and, in turn, increase the likelihood of introducing more premium EV options to the Australian market,” an Audi spokesperson told Chasing Cars.

A change in situation could see A6 e-tron come to Australia

To that end, Audi Australia has not permanently shut the door on the A6 and S6 e-tron. A change to the EV incentive picture in this market – or potentially the availability of a model to sit beneath the LCT threshold – could change things.

Audi recently added a base model version of its Q6 midsize electric SUV intended to transact beneath the luxury car tax threshold but it has declined to do the same for the A6 e-tron.

“At present, demand is strongest within the electrified segment, and our focus remains on offering hybrid, PHEV, and fully electric options within this core category,” a spokeperson said.

Combustion and hybrid versions of the A6 still under consideration for Australia

Based on the Volkswagen Group’s PPE premium EV platform, the A6 e-tron is available in sedan and wagon formats, with either rear-wheel drive or Quattro all-wheel drive, and with between 210-315kW of power. A high-performance S6 is available in Europe with 370kW.

Under the skin, the electric versions of the A6 and S6 are most closely related to the Audi Q6 midsize SUV and the Porsche Macan EV.

However, a mechanically distinct new-generation model also badged A6, offering petrol, diesel and plug-in hybrid (PHEV) powertrains and based on Audi’s premium combustion vehicle platform, also launched this year in Europe.

An Audi Australia spokesperson told Chasing Cars that “other variants, including combustion and hybrid versions of the A6 range, are under evaluation for Australia.”

While deliveries of the electric BMW i5 have been higher throughout 2025 than for the petrol and diesel versions of the 5 Series (403 vs 288), the level of discounting is understood to have been much lower for the petrol and diesel versions, protecting profit margins.