Audi has lowered its full-year 2025 forecast as mounting cost pressures from higher U.S. import tariffs, internal restructuring, and softening demand in key global markets weigh on performance.
The German automaker now expects annual revenue between €65 billion and €70 billion, down from its earlier range of €67.5 billion to €72.5 billion. Its operating margin forecast has also been revised to 5% to 7%, while projected net cash flow has decreased to between €2.5 billion and €3.5 billion, compared to a prior range of €3 billion to €4 billion.
Additionally, Audi’s profit after tax for the first half of the year fell sharply to €1.35 billion, a 37% decline from €2.15 billion during the same period in 2024. The company attributed the decline to increased costs associated with its restructuring plan and sharply higher tariffs on vehicles exported to the U.S.
On Sunday, the European Union and the United States agreed to a new trade deal that imposes a 15% flat tariff on all EU goods entering the U.S., including cars. Audi stated that it is still evaluating the impact of the new tariff structure on its long-term financial outlook.
Despite these headwinds, revenue rose 5.3% in the first half to €32.57 billion, supported by gains in EV sales. Global deliveries of Audi electric vehicles grew 32% year-over-year to 101,381 units, underscoring the company’s shift toward electrification.
However, total Audi-branded vehicle deliveries dropped 5.9% to 783,531 units. Sales in China declined 10% due to intense competition, while deliveries in North America fell 9%, affected by economic uncertainty and model changeovers. Sales in Europe, excluding Germany, decreased by 4%, while the German market experienced a modest 0.7% increase.
As part of its restructuring, Audi recently reached a deal with worker representatives to reduce up to 7,500 jobs over the next several years. The initiative aims to enhance productivity and flexibility at its German manufacturing sites, generating more than €1 billion in annual savings over the medium term.
Here’s why it matters:
Audi’s revised guidance reflects ongoing pressure on automakers from trade policies, economic volatility, and shifting consumer preferences. For franchise dealers, particularly in North America, these changes may result in tighter inventories, revised pricing structures, and a more focused approach on EVs. As Audi leans into electrification and adapts to regional market demands, dealerships must remain agile and responsive to the evolving product mix.
Key takeaways:
- Tariff impact now tangible
Higher U.S. import duties are affecting Audi’s profitability and reshaping its cost structures, with potential implications for pricing and vehicle availability. - Lowered sales and margin outlook
Audi now expects revenue of €65–70 billion and an operating margin of 5%–7%, both of which are down from earlier forecasts due to market and internal pressures. - Deliveries decline in major markets
Global Audi deliveries declined 5.9% in the first half of 2025, with a 10% drop in China and a 9% decrease in North America, posing challenges to dealer sales efforts. - Restructuring plan in motion
Audi is cutting up to 7,500 jobs and targeting €1 billion in savings to improve factory efficiency and long-term competitiveness. - Electric vehicles remain a growth driver
EV deliveries rose 32% year-over-year to over 101,000 units, positioning Audi’s electrification strategy as a key opportunity for dealers.
