Azernews.Az

By Alimat Aliyeva

Notably, the company’s forecast does not factor in potential impacts from new US tariffs, which could significantly affect pricing and competitiveness in a key market, Azernews reports.

Audi reported first-quarter revenue of €15.43 billion ($17.49 billion) for the January–March period, up from €13.73 billion a year earlier, reflecting strong performance in its electric vehicle (EV) segment.

For 2025, the automaker projects revenue between €67.5 billion and €72.5 billion, with an expected operating margin ranging from 7% to 9%.

“The financial implications of import tariffs, particularly in the United States, cannot be conclusively assessed at this stage,” Audi stated in an official release. The company also noted that its guidance excludes the potential impact of a labor agreement reached in March with the works council.

Audi, which currently does not operate manufacturing facilities in the United States, confirmed that it will decide this year whether to establish production capacity there. Such a move could be pivotal in navigating future trade policies and improving supply chain resilience.

CEO Juergen Rittersberger indicated that the company is especially focused on electric vehicles as part of its long-term strategic shift. “We will also have a very close look at electric cars because that’s still an area of focus, also in the US,” he told reporters.

Electric vehicles have become a cornerstone of Audi’s growth strategy. Despite a 3.4% decline in overall global vehicle deliveries in the first quarter, sales of EV models jumped by 30.1%, highlighting robust consumer demand and ongoing investment in electrification.

In North America (excluding Mexico), deliveries fell 2.1% to 48,599 units, with several models currently awaiting upgrades. Meanwhile, shipments in China dropped by 7% to 144,471 vehicles, reflecting intensifying competition in the world’s largest auto market.

Like many European automakers, Audi is under mounting pressure from proposed tariffs that could increase vehicle prices in the US by several thousand dollars—posing new challenges in an industry already contending with high costs and aggressive competition from Chinese and American EV makers.

Currently, Audi serves the US market from its factory in San José Chiapa, Mexico, which produces the Q5 SUV and employs more than 5,000 workers. Expanding production into the US could serve as both a hedge against trade disruptions and a step toward deeper integration into a critical market.

Adding to its ambitions, Audi is also exploring next-generation battery technologies and software-defined vehicle platforms, aiming to differentiate itself in the rapidly evolving landscape of premium mobility.