Audi Group’s First Nine Months Marked by Market Challenges and Strategic Shift

[Source: Audi]

Audi recently released their third quarter sales figures and like many automakers the effects of a challenging economic situation can be seen. Although there are some bright spots, most notably strong growth for Audi e-tron models.

In the first nine months of 2025, Audi Group navigated an unfavorable economic environment while showing steady growth. Revenue reached approximately 48.4 billion euros, up 4.6 percent from the same period last year, with an operating profit of 1.6 billion euros and net cash flow of 2.1 billion euros. The Brand Group Progressive (Audi, Bentley, Lamborghini, and Ducati brands) delivered 1,191,141 vehicles, driven in large part by strong demand for electric vehicles, which grew 41 percent. Audi is advancing its transformation with a new design philosophy and corporate strategy, signaling a focused path toward innovation and electrification despite global market pressures.

Guiding Audi Forward

“Clarity is the compass that will guide Audi as a whole going forward. We are shaping our company just as we design our vehicles – with a focus on the essentials,” says CEO Gernot Döllner. “The Audi Agenda was important for taking stock of the situation objectively, identifying immediate areas for action, and setting key strategic directions. Our new corporate strategy builds seamlessly on that foundation.”

Audi’s strategic realignment is streamlining operations and cutting complexity to optimize costs. By focusing on core future product areas and simplifying processes, the brand is becoming leaner and more agile, freeing up resources to drive innovation and maintain technology leadership.

Deliveries and e-tron Growth

“We are responding to the challenging overall economic situation and intensified competition with stringent cost control measures and are continuing to work on our financial performance. At the same time, we are making our business model future-proof and resilient. Now it’s about pushing ahead with the transformation and restructuring with determination and full force,” says CFO Jürgen Rittersberger.

In the first nine months of 2025, the Brand Group Progressive delivered 1,191,141 vehicles across Audi, Bentley, and Lamborghini, while Ducati delivered 41,973 motorcycles, both showing a slight decline due to challenging market conditions. The Audi brand accounted for 1,175,765 deliveries, down 4.8 percent, but battery-electric vehicles (BEVs) saw strong demand with over 163,000 units sold—a 41 percent increase—making it the fastest-growing segment in the premium EV market. The Audi Q6 e-tron led sales with nearly 64,000 units, and incoming EV orders in western Europe surged 67 percent, signaling continued growth. Overall incoming orders across all drive types in western Europe rose 13 percent in the first three quarters. Looking ahead to 2026, Audi plans its largest-ever product initiative, focusing on compact electric models, efficient full-size combustion SUVs, and high-performance RS variants. Key highlights include a new fully electric entry-level model and the world premiere of the Audi Q9, marking the brand’s first full-size SUV in the prestigious D-segment.

From January to September 2025, Audi saw strong growth in all-electric models across key markets. In Europe (excluding Germany), deliveries of fully electric vehicles rose 43 percent to 79,200 units, though overall deliveries across all drive types fell 4 percent to around 341,000 vehicles. Germany, Audi’s home market, saw particularly robust EV demand with over 28,000 units delivered, up 70 percent, contributing to total deliveries of 149,000 vehicles (up 1 percent).

Deliveries in China, and North America

In China, Audi launched market-specific models including the A5L, A5L Sportback, Q6L e-tron, and the new AUDI E5 Sportback, which are gradually boosting sales. Despite this, total deliveries were approximately 434,000 vehicles (down 9 percent) due to intense competition.

In North America (excluding Mexico), electric models also performed strongly with roughly 32,000 units sold (up 54 percent), though total deliveries fell to just under 156,000 (down 5 percent), impacted by challenging US tariffs.

Elsewhere in growth markets, EV deliveries jumped 51 percent to around 11,000 units, with overall vehicle deliveries totaling 96,000 (up 6 percent). These figures highlight Audi’s accelerating transition to electric mobility while navigating regional market challenges and competitive pressures.

Financial Performance

In the first three quarters of 2025, the Audi Group generated 48.38 billion euros in revenue, up 4.6 percent from the previous year, driven largely by a stronger product mix and higher sales of electric vehicles. Operating profit reached 1.56 billion euros, down from 2.09 billion euros in 2024, resulting in an operating margin of 3.2 percent compared with 4.5 percent the prior year. The decline in profitability was influenced by U.S. tariffs, ongoing restructuring efforts, CO₂ compliance provisions, and the rescheduling of a jointly developed electric platform for the D-segment. Despite these challenges, Audi’s focus on electric models and premium offerings helped sustain revenue growth.

Audi has updated its 2025 financial outlook in response to market developments and delays in the joint development of a D-segment electric platform. The company now expects full-year revenue between 65 and 70 billion euros, with an operating margin projected at 4–6 percent. Net cash flow is expected to range from 2.5 to 3.5 billion euros. This forecast assumes stable availability of semiconductors and related components, which remain critical to production and delivery.