EV Growth Can’t Save Audi From 2025 Profit Collapse originally appeared on Autoblog.
Audi has been forced to lower revenue expectations for the year
It’s been a challenging first half of the year for many automakers as the effect of tariffs are fully realized. The Volkswagen Group already reported that profits were down by a third in the second quarter of 2025, year-on-year. We knew that Audi’s struggles contributed to this decline, but now we know the full extent of how challenging things have been for the BMW and Mercedes rival. Audi has reported significant decreases in deliveries and operating profit for the first half of 2025, as tariffs and restructuring have both impacted the brand.
Audi Profits Drop By 37.5%
After tax, Audi profits dropped to €1.35 billion (around $1.56 billion) for the first half of 2025, a decline of 37% compared to the same period last year. Operating profit dropped to around €1.1 billion ($1.27 billion), down by 45%.
While the VW Group as a whole has managed to increase sales in 2025 so far, Audi alone has not. The Audi Group delivered approximately 794,000 models in the first half, a decline of almost 6%. In North America, around 99,000 vehicles were delivered, a decrease of 9%, while deliveries in China and Europe were down by 10% and 4%, respectively. We already know that in the United States, Audi is selling far fewer cars than BMW. The brand also has three of the slowest-selling models in the U.S. right now.
“The situation continues to be very challenging,” said Jürgen Rittersberger, Audi CFO. “In addition to intense competitive pressure, the drastically increased US import tariffs and expenses for Audi restructuring measures have impacted financial performance in the first half of the year. Uncertainty around incentive programs in the BEV segment has also dampened consumer demand in some markets. At the same time, we are undertaking the biggest transformation in company history.”
It’s Not All Bad News
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Sales of fully electric Audi models have increased substantially in 2025. The brand delivered over 101,000 such models globally in the first half, representing an increase of 32%. These sales were led by models like the Audi Q4 e-tron and Audi Q6 e-tron, with approximately 45,000 and 36,000 deliveries, respectively. While EV sales were up in many regions, they decreased by 4% in North America. Revenue at Audi also increased to €32.6 million, up by 5.3%.
As some brands have found, higher EV sales often equate to lower profitability, as the VW Group has found in 2025. The same trend seems to be apparent at Audi so far this year.
Related: Porsche Admits Trouble Ahead: “Our Business Model No Longer Works”
Audi is also in the midst of a massive restructure, including the rollout of many new models. The benefit of these changes is perhaps yet to be realized, as the brand is still planning to introduce ten new plug-in hybrids by the end of 2025. By the time the year ends, Audi will have the youngest portfolio within the premium segment.
“Renewing our portfolio is a key part of the fundamental realignment of our company. But our realignment goes beyond the product range. With the agreement for the future, we are sending a clear signal for more focus, efficiency, and profitability and are strengthening the future viability of the German sites,” says Audi CEO Gernot Döllner.
Audi has updated its forecast for the 2025 fiscal year. It now expects revenue to reach between €65 and €70 billion, down by around €2.5 billion relative to previous expectations.
Another tough quarter awaits Audi, as the company remains more vulnerable to tariffs than the likes of BMW, which has production facilities in the United States.
Related: Trump’s EU Tariff Deal Slashes Car Duties — What It Means for BMW, Mercedes, and Porsche
EV Growth Can’t Save Audi From 2025 Profit Collapse first appeared on Autoblog on Jul 29, 2025
This story was originally reported by Autoblog on Jul 29, 2025, where it first appeared.
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