On the Dash:
- Audi is targeting record global sales of 2 million vehicles annually as part of a long-term growth strategy, following recent declines and setbacks.
- The U.S. market is a key focus, with the potential to nearly double sales and the possibility of opening a factory to offset the steep 25% tariff on imported models.
- The strategy follows delays in new model launches and technological challenges, with Audi aiming to strengthen its competitiveness against rivals BMW and Mercedes-Benz.
Volkswagen’s Audi is weighing a long-term annual sales target of 2 million vehicles, which would mark a record and a more aggressive growth strategy after recent setbacks, according to a person familiar with the matter. The new plan could be unveiled later this year as part of a broader strategy push under Chief Executive Gernot Döllner.
The potential goal represents a roughly 20% increase from Audi’s 2025 target of 1.7 million to 1.8 million vehicles. The company delivered 1.67 million cars in 2024, down 11.8% from the year before, as launch delays and technology setbacks weighed on results.
Much of the growth is expected to come from the U.S. market, where Audi aims to nearly double sales from its current 200,000 units annually. However, that expansion faces steep hurdles, including a 27.5% U.S. tariff on imported vehicles that cost Audi an estimated €600 million ($702 million) in the first half of 2025 alone.
Audi does not currently operate a U.S. production facility but is considering whether to build one or leverage Volkswagen’s existing footprint in North America. A new plant could also serve as an export hub, similar to Mercedes-Benz and BMW factories in the U.S. A decision on U.S. production is expected later this year.
Further, Audi’s strategic overhaul comes as it works to regain ground lost to rivals in key markets. While the European car market has plateaued, the U.S. remains one of the few regions with steady growth potential. CEO Döllner, who took over in 2023, has prioritized positioning the brand to capture more share in that market.
Notably, the European Commission recently advanced a trade agreement with Washington that could eventually reduce U.S. tariffs on European cars from 27.5% to 15%, though the U.S. has not yet taken action. Lower tariffs could ease some of Audi’s cost pressures as it evaluates its long-term strategy.
