Audi AG is navigating a turbulent 2025 with a blend of strategic transformation, electrification momentum, and international expansion—even as the company contends with intensified global challenges, including U.S. import tariffs and restructuring costs.
In the first half of the year, Audi Group revenue rose by 5.3% to €32.6 billion, while operating profit dropped sharply to €1.1 billion, down from €2 billion in the same period last year. Net cash flow stood at €0.9 billion, impacted by both lower earnings and the acquisition of Sauber Holding AG.
“The situation continues to be very challenging,” admitted Audi CFO Jürgen Rittersberger. “In addition to intense competitive pressure, the drastically increased U.S. tariffs and our own transformation expenses have clearly impacted our performance.” Nonetheless, Rittersberger underscored the necessity of these transformation efforts, highlighting Audi’s Performance Program as key to improving long-term profitability.
Electrification Fuels Growth
Despite a dip in total deliveries—down nearly 6% to 794,088 units across the Brand Group Progressive (Audi, Bentley, Lamborghini, and Ducati)—Audi’s electric offensive is paying dividends. Fully electric vehicle (BEV) deliveries surged 32% year-over-year, surpassing 101,000 units globally in H1. Standout performers include the Audi Q4 e-tron (approx. 45,000 units) and the new Audi Q6 e-tron (36,000 units).
Markets such as France (+196%), the Netherlands (+86%), and Germany (+76%) reported especially robust BEV growth, reinforcing Audi’s commitment to electrification. Incoming orders for all-electric models in Western Europe climbed an impressive 70%.
CEO Gernot Döllner emphasized the significance of the brand’s current momentum: “By the end of 2025, we will have the youngest model portfolio in the premium segment. Electrification is central, but our realignment also includes optimizing our team structure, processes, and strategic focus.”
Audi plans to launch ten new plug-in hybrid models by the end of 2025, further diversifying its electrified lineup.
Regional Performance: Mixed Results
Europe saw stable performance with EV growth (+46%) cushioning a 4% overall decline. Germany stood out with a modest 1% increase in total deliveries, driven by nearly 21,000 electric units sold.
China, Audi’s largest market, proved more challenging. Deliveries fell 10% to under 288,000 units amid fierce local competition. However, Audi is gearing up for a product push in the second half of the year, including the China-exclusive Audi Q6L e-tron and A5L variants.
North America also faced headwinds. Deliveries declined 9%, with BEVs down 4%. The delayed impact of Audi’s model initiative and macroeconomic conditions weighed on performance.
Brand Group Highlights: Lamborghini Holds, Bentley and Ducati Down
While Lamborghini remained a steady performer with 5,681 units sold (+2%), Bentley saw an 11% decline to 4,876 vehicles. Ducati also posted a 5.7% dip in motorcycle deliveries. Despite the drops, all three brands continue to contribute positively to the Group’s financials, with Lamborghini maintaining a strong 26.6% operating margin.
Financial Outlook: Adjusted but Ambitious
Audi has revised its full-year guidance amid ongoing restructuring and geopolitical friction. Revenue is now expected to land between €65 billion and €70 billion, with an operating margin of 5–7%. Net cash flow is forecast at €2.5–3.5 billion.
The Group’s financial result fell 24.3% to €593 million, partly due to lower returns from China. Profit after tax also slipped 37.5% year-over-year to €1.35 billion.
Still, optimism remains. Audi recently secured the 2025 AutomotiveINNOVATIONS Award for most innovative premium brand—a testament to the brand’s focus on future mobility and technology. In partnership with American EV maker Rivian, Audi is also co-developing next-gen software-defined vehicle (SDV) platforms, signaling a push to enhance digital infrastructure and long-term tech leadership.
The Road Ahead
Audi is clearly in a state of transformation—one marked by tough financial trade-offs but driven by a clear vision: sustainability, innovation, and global competitiveness. With a pipeline full of new electric and hybrid models, ongoing investment in software capabilities, and a leaner operational structure, the brand is preparing not just to weather current storms, but to thrive in the next era of premium mobility.
Source: Audi