Despite headwinds from global economic pressures, political uncertainties, and intensified market competition, AUDI AG has opened 2025 with decisive strides toward transformation, driven by an assertive push into electrification and structural agility. The premium manufacturer’s first-quarter results reflect both the difficulties of the current macroeconomic landscape and the encouraging outcomes of its future-focused strategy.
Solid Revenue Growth Amid Industry Pressures
AUDI AG reported revenue of €15.4 billion for the first quarter of 2025, marking a 12.4% year-on-year increase. This growth was primarily fuelled by an improved model mix and rising demand for electric vehicles, despite a 3.4% decline in total vehicle deliveries. Operating profit stood at €537 million, delivering an operating margin of 3.5%, slightly up from the previous year’s 3.4%. Net cash flow, while still in negative territory at -€61 million, showed a significant improvement from -€768 million in Q1 2024.
“Our key figures for the first quarter clearly show how important it is that we push ahead with the transformation with our full strength,” said Jürgen Rittersberger, CFO of AUDI AG. “We’ve already set the right course for this.”
EV Momentum Builds: Deliveries Surge 30%
Audi’s electric offensive is yielding tangible results. In Q1 2025, the brand delivered 46,371 fully electric vehicles, a 30.1% increase compared to the same period in 2024. Notably, markets such as France (+169%), Switzerland (+120%), and Germany (+59%) showcased impressive growth in EV demand. These figures underscore the traction of Audi’s model initiative, launched in 2024, which continues to shape volume trends across its portfolio.
Incoming orders for all-electric vehicles surged by 86% in Western Europe, and total order intake across all drive types rose by 22%, reflecting growing consumer confidence in the brand’s evolving product strategy.
“The first few months of 2025 saw us take decisive steps towards repositioning our company,” said CEO Gernot Döllner. “We are particularly encouraged by sales and order intake for our new electric models.”
Model Offensive Gains Pace
As part of its aggressive electrification strategy, Audi plans to launch ten new plug-in hybrid models by the end of 2025. The Audi A3 and A5 — now available in two body styles — are already on the market, boasting improved charging capabilities and electric ranges exceeding 100 kilometers. May 2025 will see the debut of the Audi A6 Avant e-hybrid and Audi A6 Sedan e-hybrid, reinforcing the brand’s commitment to offering versatile, long-range electrified options.
In China, a key strategic market, Audi unveiled five world premieres at Auto Shanghai 2025, including the A6L e-tron and the AUDI E5 Sportback — the first production vehicle from Audi’s new electric sub-brand focused on tech-savvy customers. These steps are central to Audi’s effort to shorten development cycles and enhance its regional portfolio with locally tailored EVs, leveraging the Premium Platform Electric and Premium Platform Combustion architectures.
Regional Performance: Mixed but Promising
- In Europe (excluding Germany), Audi saw a 3% decline in total deliveries but a 50.4% increase in electric car sales.
- In Germany, the brand recorded 4.8% growth in overall deliveries, including a 59% jump in electric vehicle sales.
- North America saw a 2.1% dip, largely attributed to ongoing model changeovers.
- In China, deliveries declined by 7.0%, a reflection of intense local competition, prompting Audi to accelerate EV localisation efforts.
Despite a global delivery decline of 3.4% across the Brand Group Progressive (Audi, Bentley, Lamborghini, Ducati), the group’s product strategy is beginning to influence key segments and geographies in a positive direction.
Brand Performance Highlights
- Lamborghini recorded 12.8% growth in deliveries and a 33% rise in operating profit, reaffirming its robust demand.
- Bentley posted a drop in both revenue and operating profit, attributed to shifting customer sentiment and macroeconomic pressures.
- Ducati saw a 3.5% decline in deliveries, with revenue and profit also down — a reminder of the segment’s vulnerability to broader market trends.
Financial Outlook for 2025
Looking ahead, the Audi Group maintains its forecast for full-year revenue between €67.5 and €72.5 billion, with an operating margin of 7–9% and net cash flow of €3–4 billion. However, this forecast excludes potential impacts from import tariffs in the U.S. and ongoing evaluations surrounding the Agreement for the Future, signed in March 2025 with the company’s works council. This agreement is intended to boost productivity, flexibility, and speed at Audi’s German facilities.
A Strategic Shift with Long-Term Payoff
The first quarter of 2025 encapsulates a pivotal chapter in Audi’s transformation. With rising EV sales, enhanced model offerings, and strategic groundwork laid for future growth, the brand is taking measured, bold steps to reshape its identity in an era of electric and digital mobility.
“Our model initiative is now, step by step, coming onto the global markets,” added Döllner. “Audi has started to execute its strategy — and we’re delivering on it.”
