I think the current Hybrid version was axed because the CO2 figures were too high for it to be attractive as a company car...
However, the new Q7 (due in the UK by end of this year) etron plug-in diesel hybrid promises below 50g/km CO2, putting it to the lowest bracket together with all electric cars, so currently BIK tax bracket is only 5%. I believe this will make it very popular executive company car.
Apparently the new D5 A8 will have the same etron plug-in diesel option available.
And just a couple of weeks ago Audi announced all-electric Q6 SUV concept, which will be head to head competitor to the Tesla Model X.
So I don't think Audi has thrown in the towel, far from it