Audi AG reported a mixed performance for the first quarter of 2026, as global economic uncertainty and shifting market dynamics weighed on overall deliveries, even as the company recorded growth in key European markets and strong demand for plug-in hybrids.
The automaker posted revenue of €14.2 billion, down approximately 8% year-on-year, while operating profit rose nearly 10% to €588 million. Net cash flow improved significantly to €883 million, reflecting tighter cost controls and optimized working capital.
Audi delivered 364,877 vehicles globally during the quarter, a decline of 6.1% compared to the same period last year. However, performance varied by region. Deliveries in Europe (excluding Germany) rose nearly 6% to 123,724 units, while the company’s home market of Germany saw a 4% increase to 50,308 vehicles.
A key highlight was the surge in demand for plug-in hybrid models, which grew by around 160% year-on-year, with more than 30,000 units delivered. In contrast, fully electric vehicle deliveries declined slightly to approximately 42,000 units, impacted by reduced subsidies in major markets such as the United States and China. Overall, electrified vehicles accounted for 20% of total deliveries.
CEO Gernot Döllner emphasized the need for region-specific strategies, noting that varying customer demands across markets are making the traditional “global car” approach less viable. CFO Jürgen Rittersberger highlighted the urgency of cost optimization and efficiency measures amid rapid changes in the global business environment.
In North America, deliveries dropped sharply by 27% to 35,464 vehicles, largely due to U.S. tariffs and the discontinuation of EV subsidies. China also saw a 12% decline to 127,109 units, reflecting macroeconomic challenges and intense competition, although electric vehicle deliveries in the region rose by nearly 28%.
Audi continues to expand its global product lineup with a mix of electric, hybrid, and combustion engine models tailored to regional needs. Recent and upcoming launches include the China-focused AUDI E7X, the full-size Audi Q9 SUV for North America, and the Audi A2 e-tron, an entry-level EV for Europe.
Within the broader group, performance was mixed. Bentley recorded a loss amid declining volumes and tariff pressures, while Lamborghini maintained strong profitability despite a slight dip in revenue. Ducati also reported lower revenue and profit due to competitive market conditions.
Profit after tax for the group stood at €559 million, down from €630 million a year earlier. Despite ongoing challenges, Audi reaffirmed its full-year outlook, projecting revenue between €63 billion and €68 billion and an operating margin of 6–8%.
As geopolitical uncertainties and market transitions continue to reshape the automotive industry, Audi’s focus on efficiency, electrification, and localized strategies is expected to play a critical role in navigating the evolving landscape.
