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Audi has posted a 12.4% increase in revenue for the first quarter of 2025, reaching €15.4 billion. This growth was driven by a favorable product mix and a significant rise in battery electric vehicle (BEV) sales, even amid global economic challenges, rising geopolitical tensions, and increasing competition in the automotive industry. Despite these external pressures, Audi’s performance highlighted the growing demand for electric vehicles, particularly in European markets.

Electric Vehicle Sales Soar: Audi Leads the EV Charge

Audi’s global electric vehicle deliveries surged by 30.1% year-on-year, with 46,371 BEVs sold in Q1 2025. France saw the most significant growth, with a remarkable 169% rise in EV demand, followed closely by Switzerland at 120%. Other European markets, including the Netherlands and Norway, also saw strong increases of 87% and 64%, respectively. In Audi’s home market of Germany, EV sales rose by 59%. The company’s ability to capture these market shifts has been key to its strong overall performance during the first quarter.

Operating Profit Pressured by Rising Costs and Regulatory Challenges

Despite the revenue increase, Audi’s operating profit for Q1 2025 was €537 million, a modest figure with a return on sales of 3.5%. This margin was impacted by several factors, including higher production costs, an increased share of electric vehicles in the portfolio, and provisions tied to stringent CO₂ emissions regulations. Additionally, Audi reported a negative net cash flow of €61 million, reflecting the broader economic pressures on the company.

CEO Gernot Döllner Stays Optimistic Despite Setbacks

Total vehicle deliveries decreased by 3.4% to 383,401 units compared to the same quarter in 2024, but Audi’s CEO, Gernot Döllner, expressed confidence in the company’s strategy. He pointed to the company’s proactive steps to transform operations, particularly an agreement reached between management and the works council to boost productivity and adaptability at its German plants. Döllner remains optimistic about Audi’s ability to navigate through the challenging year ahead, focusing on the strong response to its new electric models.

Audi Reaffirms Its Strategic Transformation Goals

CFO Jürgen Rittersberger supported the optimism, underlining the need to strengthen Audi’s competitiveness and efficiency moving forward. He reassured investors and stakeholders that Audi was committed to fully executing its strategic roadmap. The company’s leadership emphasized that the transformation would continue at full speed, with structural changes designed to improve Audi’s market position and return the company to its former industry-leading status.

Audi’s 2025 Forecast and Financial Expectations

Looking ahead, Audi has projected a revenue range of €67.5 billion to €72.5 billion for the full year. The company also expects an operating margin between 7% and 9%, along with a net cash flow between €3 billion and €4 billion. However, Audi cautioned that the financial effects of U.S. import tariffs are still uncertain due to the ongoing volatility in global trade. The company is still analyzing the impact of a new internal agreement designed to guide necessary changes and improvements, as some aspects of this agreement are still in progress.

Regional Performance: Mixed Results Across Global Markets

In terms of regional performance, Audi achieved a 50.4% year-over-year increase in fully electric model deliveries, with 25,129 units delivered globally in Q1 2025. Germany accounted for the highest number of deliveries in Europe, with 8,640 electric vehicles sold, a 59% increase. However, total deliveries in Europe, excluding Germany, fell by 3% to 112,707 units. In North America (excluding Mexico), Audi saw a slight decline of 2.1% in deliveries to 48,599 units, largely due to generational transitions in several key models.

In China, Audi faced a 7% drop in deliveries, down to 144,471 units. This was attributed to intense competition from domestic manufacturers. To combat this, Audi plans to expand its electric vehicle lineup and strengthen its collaboration with Chinese partners, ensuring the company remains competitive in this crucial market. Audi’s strategy involves focusing on localizing production and tailoring offerings to meet Chinese consumer preferences.

Focus on Electric Mobility and Innovation

As Audi looks to the future, the company remains committed to expanding its electric vehicle portfolio and enhancing its global position in the electric mobility sector. Audi continues to prioritize innovation and sustainability as key drivers of its long-term growth strategy. The company’s continued investments in electric vehicle technology and its partnerships with global markets are expected to help Audi navigate industry challenges and maintain its competitive edge.

While Audi faces challenges, including rising production costs and external market volatility, the company’s commitment to innovation and its focus on the growing electric vehicle sector position it well for continued growth. As Audi works to meet its strategic transformation goals, the company’s strong performance in the electric vehicle market provides a solid foundation for future success. The company will continue to monitor global market conditions and adapt its strategy to ensure it remains at the forefront of the automotive industry.