Audi has reported a solid increase in its revenue for the first quarter of 2025. The German car company earned €15.4 billion, which is a 12.4% rise from the same time last year. This growth came mainly from rising demand for electric vehicles (EVs). Audi’s success shows the company is on the right path, even with the challenges faced by the car industry.
Strong Performance Driven by Electric Vehicles
The increase in Audi’s revenue is largely due to the growing interest in electric vehicles. In the first quarter of 2025, Audi’s operating profit reached €537 million, despite higher production and regulatory costs. The company’s return on sales was 3.5%, which was affected by the larger share of EVs in its lineup and CO₂ compliance costs. However, Audi’s overall financial situation stayed stable.
Audi’s net cash flow, however, dropped to -€61 million. This was mainly because the company invested heavily in new technologies. The shift to electric vehicles is seen as crucial for the company’s future growth. Audi is betting on EVs to help it stay competitive in the changing automotive market.
European Markets Lead EV Growth
Audi’s electric vehicle sales soared in Europe during the first quarter of 2025. The company sold 46,371 EVs worldwide, a 30.1% increase from the previous year. France saw the highest growth, with EV sales up by 169%. Switzerland followed closely with a rise of 120%, and the Netherlands recorded an 87% increase. Even in Germany, Audi’s home market, electric vehicle sales rose by 59%.
Despite the success in EV sales, total deliveries of all vehicle types fell slightly to 383,401, a 3.4% drop compared to the same period in 2024. This drop is mainly due to fewer sales of traditional combustion engine vehicles. However, Audi’s shift towards electric cars is expected to help the company recover and grow.
Audi’s Strategy for Future Competitiveness
Audi CEO Gernot Döllner highlighted the company’s long-term strategy for future growth. He mentioned an agreement reached in March between Audi’s management and the workers’ council. The goal is to improve productivity and agility within the company. Audi has already started implementing this strategy by launching new electric models around the world.
Chief Financial Officer Jürgen Rittersberger also emphasized the company’s focus on improving efficiency. He stressed that Audi is committed to becoming more sustainable and competitive in the global market. Rittersberger believes that the recent internal agreements will strengthen Audi’s position and ensure long-term success.
Projections for 2025 and Beyond
Looking ahead, Audi expects its revenue for the full year 2025 to fall between €67.5 billion and €72.5 billion. The company predicts an operating margin between 7% and 9%. Audi also expects positive cash flow of between €3 billion and €4 billion. However, Audi noted that trade uncertainties, especially potential U.S. import tariffs, could pose risks to its financial outlook.
Despite these challenges, Audi remains confident in its ability to navigate the difficulties. The company continues to focus on growing its electric vehicle sales and expanding its global reach.
Growth in Electric Vehicle Deliveries
Audi’s electric vehicle portfolio grew significantly in the first quarter of 2025. The company delivered 25,129 EVs, a 50.4% increase from the same period in 2024. In Germany alone, Audi delivered 8,640 EVs, a 59% rise from last year. Across Europe, Audi’s overall EV deliveries were strong, despite a slight decline in non-German markets.
Audi also saw its best first-quarter sales in Austria, Poland, and Croatia. The company’s success in these countries shows that its electric models are gaining traction in diverse European markets. However, in North America, Audi saw a small dip in deliveries, down 2.1% to 48,599 units. This decline was mainly due to model transitions.
In China, Audi’s largest market, deliveries fell by 7%, totaling 144,471 units. The drop was largely caused by increased competition from local Chinese automakers and shifting consumer preferences. To address this, Audi plans to expand its EV offerings in China and partner with local companies to meet the specific needs of Chinese consumers.
Expanding the EV Lineup
Audi is committed to growing its electric vehicle lineup to stay competitive. The company plans to introduce more electric models in the near future. These new models will be tailored to regional markets, including China, where demand for electric vehicles is growing rapidly. Audi’s continued focus on EVs is key to its long-term strategy and will help the company maintain its position in the global automotive market.
In summary, Audi has shown impressive growth in the first quarter of 2025. The company’s focus on electric vehicles has paid off, with strong sales in Europe and a growing presence in other markets. While challenges remain, such as trade uncertainties and competition, Audi’s commitment to innovation and sustainability will drive its future success. The company is positioning itself for continued growth in the electric vehicle market.