The all-new V8 designed by Audi for use in the wider VW Group may be the last of its kind, a company source has told our sister publication Autocar UK. The source said another all-new V8 engine family is unlikely because of the shift in investment towards all-electric and hybrid powertrains planned for the future by Audi bosses.

The source said: “By 2025, the plan of Audi management is to have between 25 percent and 35 percent of Audi’s output as battery-electric vehicles. It would be very difficult to justify the huge investment in another new V8 because of the cost of developing electric drivetrains and battery packs. You have to ask what is the best use of investment money.”

The automaker’s new V8 engine made its debut in diesel form in the new Audi SQ7, where it was equipped with two conventional turbochargers and an electric ‘blower’ that spools the turbochargers up to operating speed regardless of the engine speed.

There will also be a petrol iteration of the new V8 engine for use in future Porsche, Bentley and Audi models.

The VW Group source said the engineers are particularly pleased with the V8 diesel installation in the second-generation Porsche Panamera, describing the upcoming model as “really, really impressive”.

Global fuel economy regulations, however, are putting pressure on the V8 engine as a concept. As a result, many car manufacturers are looking to downsize to V6 powertrains or even, in the case of Volvo, producing only four-cylinder engines and using hybrid electric drive to deliver extra performance when the driver wants it.