Audi has posted a robust financial performance in the first quarter of 2025, achieving a 12.4% revenue growth, with earnings reaching €15.4 billion. The company’s focus on battery electric vehicles (BEVs) has been pivotal in driving this surge, despite ongoing global competition, economic uncertainty, and geopolitical tensions. The German automaker’s ability to capitalize on the growing demand for electric mobility in key markets has helped offset challenges in other areas.

First-Quarter Revenue and BEV Success

Audi’s quarterly operating profit reached €537 million, with a return on sales of 3.5%. However, the company faced increased costs, higher provisions for environmental compliance, and a larger share of BEVs in its product lineup, which impacted profitability. Its net cash flow stood at -€61 million, reflecting these pressures.

Notably, Audi’s electric vehicle deliveries soared in the first quarter, with 46,371 BEVs delivered globally, marking a 30.1% increase over the same period in 2024. Demand for BEVs was particularly strong in markets such as France, which saw a 169% surge, and Switzerland, which experienced a 120% rise. Other European countries, including the Netherlands, Norway, and Germany, also posted substantial gains, with Germany alone seeing a 59% increase in BEV sales.

However, the overall vehicle deliveries for Audi decreased by 3.4%, totaling 383,401 units compared to the first quarter of 2024. This drop was partly due to lower sales of traditional combustion engine vehicles, which were affected by the shift towards electrification.

Audi’s Strategic Shift Amid Global Uncertainty

Audi’s CEO, Gernot Döllner, emphasized the company’s commitment to transformation in the face of ongoing global challenges. He pointed to a key agreement made in March with the works council, which aims to increase productivity, flexibility, and speed at Audi’s German production sites. The agreement is part of the company’s broader strategy to adapt to changing market dynamics and maintain its competitive edge.

Döllner acknowledged the tough economic environment but noted that Audi is in the implementation phase of its new corporate strategy. He highlighted the positive response to the company’s new electric models, with strong order volumes and growing momentum in global markets.

Chief Financial Officer Jürgen Rittersberger reinforced the importance of the company’s efficiency and competitiveness. He described the “agreement for the future” as a critical step in ensuring Audi’s leadership in the rapidly changing automotive sector.

Revised Financial Forecast and Uncertainty

For the full year of 2025, Audi expects a revenue range between €67.5 billion and €72.5 billion, with an operating margin between 7% and 9%. The company also anticipates net cash flow between €3 billion and €4 billion. However, Audi has acknowledged that the ongoing volatility in global markets and the financial implications of U.S. import tariffs remain difficult to quantify at this stage. Additionally, the impact of the recent works council agreement on Audi’s financial performance is still under evaluation, meaning these factors are not reflected in the company’s current forecasts.

Record-Breaking BEV Deliveries Across Key Markets

Audi has made significant strides in its BEV sales, with deliveries increasing by 50.4% year-on-year in the first quarter, totaling 25,129 electric vehicles. In Germany, Audi delivered 8,640 BEVs, a 59% increase from the same period in 2024. Other European markets, such as Poland, Croatia, and Austria, also saw their best-ever Q1 performance, contributing to the overall growth.

In North America, Audi’s deliveries, excluding Mexico, dropped by 2.1% to 48,599 units. The decline was attributed to several models undergoing generational updates. In China, the company saw a 7% year-on-year drop in deliveries, down to 144,471 units, due to intensified competition. In response, Audi has ramped up its electric vehicle offerings and expanded partnerships to better cater to the preferences of Chinese consumers.

Audi’s Continued Focus on Electric Growth

Despite challenges in certain markets, Audi’s focus on electric vehicles is paying off, with impressive growth in BEV sales. The company’s strategy to diversify its product offerings and focus on electrification positions it well for the future. However, Audi’s success will depend on how it navigates the complexities of global competition, supply chain disruptions, and evolving consumer preferences.

As the global automotive market continues to shift towards electric mobility, Audi’s ongoing investment in BEVs, coupled with its strategic adjustments, will be crucial in maintaining its competitive position. The company’s ability to adapt to new challenges and continue delivering innovative electric models will determine its long-term success in the evolving automotive landscape.