Audi Cuts 2026 Outlook

Audi has lowered its financial forecast for 2026 after reporting weaker revenue and operating profit in the first nine months, as declining sales in China and North America added to mounting competition in the global automotive market.

The German luxury carmaker reported revenue of €42.1 billion from January to September, down 13.1 percent from €48.4 billion a year earlier. Operating profit fell 26 percent to €1.15 billion, while its operating margin narrowed to 2.7 percent from 3.2 percent.

Audi Group vehicle deliveries declined to 1,056,103 units from 1,191,141 during the same period last year.

The company now expects full-year revenue of €55 billion to €59 billion, with an operating margin of 3 to 5 percent. Net cash flow is projected at €2.5 billion to €3.5 billion.

Audi attributed the weaker performance to falling demand in China, particularly for combustion-engine vehicles, alongside intensifying price competition and growing pressure from Chinese manufacturers in Europe.

Higher energy costs linked to uncertainty in the Middle East and US import tariffs also affected operations.

“The economic situation demands that we consistently renew Audi,” said Gernot Döllner, CEO of AUDI AG.

He said the company was reducing costs while directing investments toward new products and technologies to improve its long-term competitiveness.

Audi brand deliveries worldwide fell 11.4 percent to 1,042,150 vehicles during the nine-month period.

China, including Hong Kong, recorded a 24.5 percent decline to 328,042 vehicles, while North American deliveries, excluding Mexico, dropped 17.3 percent to 128,749 units.

European markets performed better. Deliveries in Germany rose 1.8 percent to 152,011 vehicles, while the rest of Europe recorded a 1.3 percent increase to 360,649 units.

Electrified vehicles produced mixed results. Audi’s global plug-in hybrid deliveries increased 103 percent, but battery-electric vehicle sales fell 12 percent to 143,748 units.

Electric vehicle demand nevertheless improved in Germany and China, where deliveries increased 39.1 percent and 84.7 percent, respectively.

Despite the lower earnings, Audi’s net cash flow increased to €2.44 billion from €2.11 billion a year earlier.

The company is introducing new models as it seeks to improve its performance in key markets.

The Audi Q9, positioned at the top of its SUV range, is scheduled to enter the European market in November, followed by the fully electric A2 e-tron compact model in December.

Audi said the A2 e-tron was developed 21 months faster than comparable predecessor models and will be manufactured at its Ingolstadt plant in Germany.

The new RS 5, Audi’s first RS plug-in hybrid, has also attracted strong demand. Planned production for 2026 is already sold out, with European orders nearly double initial expectations.

Results across the group’s other brands were mixed. Lamborghini reported higher revenue of €2.53 billion despite lower deliveries, while Bentley and Ducati both recorded declines in revenue and operating profit.

Audi Chief Financial Officer Jürgen Rittersberger said conditions had deteriorated significantly during the third quarter, requiring tighter cost controls and more efficient operations.

The company is also reviewing further measures to strengthen its German manufacturing facilities, with discussions planned with its Group Works Council.