Mercedes-AMG has revealed plans for a new version of its iconic V8 engine by late 2026, signaling a stronger emphasis on internal combustion power amid criticism of its pivot to hybrids and electric vehicles.

In an interview with British publication Car, AMG CEO Michael Schiebe stated the brand is "doubling down on our internal combustion engine cars," with an enhanced V8 slated for debut in select SUVs before year's end.

This revamped eight-cylinder unit will expand to additional AMG lineup members, potentially including the exclusive CLE63-inspired Mythos coupe.

Schiebe withheld specifics on the engine, but sources suggest it builds on the mild-hybrid M177 4.0-litre twin-turbo V8 recently unveiled in the updated S-Class sedan.

Fitted in the S580 variant, arriving in Australia by 2027, the powerplant incorporates a flat-plane crankshaft and 48-volt mild-hybrid system to meet Euro 7 emissions rules, delivering 395kW and 750Nm.

The V8 had powered the AMG C63 until its 2024 replacement with a 2.0-litre four-cylinder plug-in hybrid setup, which triggered a notable drop in sales.

After ditching the V8 in the C63, Schiebe remarked to Car: "We see that some of our very loyal customers struggle a bit with the concept. Of course, no doubt we have also lost some customers who are just into V8s."

That said, the C63 won't reclaim its V8; a new mild-hybrid 3.0-litre inline-six turbo from the refreshed GLC53 is due later this year, with Australian availability eyed for 2025 - though unconfirmed officially.

"The [six-cylinder] engine will also come in our facelifted C-Class," Schiebe shared with Car.

The updated C63 aims to rival the BMW M3's twin-turbo inline-six - soon available as an EV - and Audi's RS5 with its V6 plug-in hybrid.

A six-cylinder setup is likewise anticipated for the next E63, succeeding three V8-equipped generations.

Though the current 'P3 hybrid' four-cylinder plug-in system drives the GT coupe and SL roadster, its future in other AMGs remains uncertain.

"I don’t want to give you more information as to whether we will see the P3 hybrid that we have at the moment in our GT and SL," Schiebe noted.

"I will say here that we are still undecided [about its continued use] because we will have more power coming from the next generation of V8s.

"One of the downsides of the P3 powertrain was to do with the space. If you put the battery in the trunk, it came with a compromise. And, at the same time, it’s a lot of weight - if you want to have a lightweight car, sometimes it’s best to have a V8-only car."

Even as it revives V8s across more vehicles, Schiebe affirmed AMG's ongoing EV commitment, despite Mercedes-Benz and competitors like Porsche and Audi scaling back electric ambitions.

"At the same time, we’ll put equal emphasis on our great EV lineup," he emphasized.

"There will be customers that want to have that combustion feeling, drive the combustion engine, and you can give them a really pure V8 experience," he told Car.

"For those who want all of the EV KPIs [key performance indicators] in terms of acceleration and the ability to drive the car in complete silence, they can go all electric."

The inaugural purpose-built electric AMG is tipped to be the GT 4-Door 'Coupe,' teased by the GT XX concept with four in-wheel motors.

AMG variants of the mid-size GLC electric SUV - shown last year - and the new electric C-Class sedan are also probable, slated for Australia in late 2026 and 2027.