Despite a challenging economic climate, Audi Group delivered a solid performance in 2024, posting €64.5 billion in revenue, €3.9 billion in operating profit, and an operating margin of 6 percent. As the company navigates intensified global competition and market uncertainties, it is gearing up for a transformative 2025, focusing on portfolio rejuvenation, strategic regional growth, and operational efficiency.
Financial Performance and Market Challenges
Audi faced delivery constraints and model transition phases, leading to an 11.8% decline in total vehicle deliveries, with 1.7 million units sold across its brands. Fully electric vehicle sales also dipped 7.8% to 164,480 units. The company’s net cash flow reached €3.1 billion, while profit after tax stood at €4.2 billion, reflecting restructuring expenses, including the Brussels plant closure.
CEO Gernot Döllner acknowledged the economic headwinds but emphasized Audi’s resilience and commitment to innovation. “We are breaking new ground while leveraging our traditional strengths,” Döllner said, underscoring Audi’s focus on expanding its electric lineup and strengthening its core markets.
Revamping the Portfolio: 20+ New Models by 2025
Audi is aggressively renewing its model range, introducing over 20 new vehicles by the end of 2025, half of which will be fully electric. Key launches include:
- New Audi A6 Avant (already unveiled, with more A6 models to follow).
- Redesigned Audi Q3 (debuting summer 2025).
- A3 Sportback TFSI e and A3 allstreet TFSI e, leading a PHEV expansion with 10 new plug-in hybrid models by year-end.
By the end of 2025, Audi will boast the youngest product portfolio among its competitors, strengthening its EV and hybrid strategy while maintaining a strong combustion engine lineup.
Market-Specific Strategies: Strengthening Global Presence
Audi is prioritizing the U.S. and China, two of its most critical markets:
- U.S. Expansion: Ten new models, including the Q6 e-tron, A6 e-tron, and refreshed Q5, A5, and A6.
- China Focus: Strengthening local production, including the Audi Q6L e-tron at the new FAW NEV plant in Changchun and additional China-specific models in partnership with FAW and SAIC.
Operational Adjustments and Cost Optimization
Audi is streamlining structures, reducing complexity, and cutting personnel costs as part of its Performance Program 14. The company is also investing €8 billion in its Ingolstadt and Neckarsulm sites to future-proof production for electric mobility while extending job protection until 2033.
Audi employees will receive a profit share of €5,310 in 2024, lower than 2023’s €8,840, reflecting the profitability decline and restructuring costs.
Brand Highlights: Lamborghini Shines, Ducati and Bentley Face Challenges
- Lamborghini: Achieved record deliveries (10,687 units, +5.7%), €3.1 billion in revenue, and an operating profit of €835 million with a 27% margin.
- Bentley: Saw a decrease in deliveries (10,643 units, -21.5%) and a drop in revenue to €2.6 billion.
- Ducati: Delivered 54,495 motorcycles, with revenues falling to €1 billion due to market challenges.
2025 Outlook: Cautious Optimism Amid Volatility
Audi expects 2025 to be another challenging year, projecting:
- Revenue between €67.5 – €72.5 billion.
- Operating margin between 7-9%.
- Net cash flow of €3-4 billion.
CFO Jürgen Rittersberger emphasized Audi’s continued transformation, saying: “We are systematically streamlining operations to safeguard profitability and fund necessary investments.”
As Audi navigates a volatile global economy, its bold restructuring, aggressive model expansion, and regional strategies will be key to securing long-term growth and competitiveness.
