Automaker Audi experiences significant growth driven by surging electric vehicle sales
German car titan Audi unveiled its Q1 2025 results, flaunting a revenue hike of 12.4%, reaching €15.4 billion primarily due to an optimized mix and robust BEV sales. However, obstacles such as fiercer competition, economic uncertainties, and geopolitical instability nipped at Audi's success.
Despite these hurdles, operating profit stood at €537 million for Q1, with a return on sales hitting 3.5%. Yet, higher costs of goods sold, provisions for CO2 compliance, and a higher BEV share weighed on the net cash flow, which plummeted to -€61m.
Audi's electric vehicles saw a breathtaking 30.1% surge in global sales, with France, Switzerland, the Netherlands, Norway, and Germany recording impressive growth rates. In France, the EV demand surged by 169%, while Switzerland experienced a 120% jump.
RV sales soared 87% in the Netherlands, Norway posted an increase of 64%, and electric cars in Germany witnessed a 59% rise. Despite these encouraging numbers, total Audi deliveries declined by 3.4% compared to Q1 2024.
Gernot Döllner, Audi's CEO, expressed optimism, stating they have embarked on a significant course of transforming the company. He acknowledged the year would be challenging due to global economic conditions, but expressed confidence in Audi's execution of its strategy.
Audi's CFO, Jürgen Rittersberger, echoed this sentiment, affirming they must continue to enhance efficiency and competitiveness. He emphasized that the agreement for the future is the right approach, and together, they will tackle challenges to regain Audi's prominence.
Looking ahead, Audi predicts revenue between €67.5bn and €72.5bn, with an operating margin between 7% and 9%. Net cash flow is projected to be within €3bn and €4bn this year. Nevertheless, the financial consequences of U.S. tariffs and the agreement for the future are still being assessed.
Audi Turns Up the Volume on Electric Vehicles
Audi's fully electric vehicle deliveries skyrocketed 50.4% in Q1 2025, with 25,129 units sold. In Germany, Audi delivered 8,640 electric vehicles, marking a 59% increase.
In Europe, excluding Germany, Audi brand deliveries dropped 3% to 112,707 units in Q1. Meanwhile, domestic deliveries in Germany grew 4.8% to 48,447 units during the first three months of the year.
Audi also reported its best Q1 ever in terms of deliveries across all drives in Poland, Croatia, and Austria. North American deliveries (excluding Mexico) dropped 2.1%, primarily due to several models undergoing a generational shift.
Chinese deliveries dropped 7% to 144,471 units in Q1 2025, mainly due to higher competition in the local market. Audi is making strategic moves to ramp up its EV portfolio and strengthen its Chinese operations with solutions tailored for local consumers and partnerships with local entities.
Sources:
- Audi Group Q1 2025 earnings press release (Volkswagen Group)
- Automobile Magazine
- Autoblog
- Reuters
- Bloomberg
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Tags:
- Audi
- electric cars
- car industry
- market performance
- business strategy
- predictions and forecasts
- Audi's electric vehicle sales showed a remarkable surge, with a 50.4% increase in fully electric vehicle deliveries, selling 25,129 units in Q1 2025.
- In Germany, Audi delivered 8,640 electric vehicles, marking a significant 59% increase, indicating a strong interest in electric vehicles among consumers.
- While Audi brand deliveries dropped 3% to 112,707 units across Europe, excluding Germany, domestic deliveries in Germany grew by 4.8% to 48,447 units, signifying continued growth within the region.
- Audi also reported impressive performances in Poland, Croatia, and Austria, achieving their best Q1 ever in terms of deliveries across all drives.
- Despite a drop in North American deliveries (excluding Mexico), primarily due to several models undergoing a generational shift, Audi is focused on strengthening its position in the region.
- In an effort to maintain and grow its market share, particularly in China, where deliveries dropped 7% to 144,471 units in Q1 2025 due to increased local competition, Audi is making strategic moves to expand its EV portfolio and enhance its Chinese operations. This includes developing solutions tailored for local consumers and forming partnerships with local entities.
