Asger Risom
Audi has become the latest European carmaker to cut its growth outlook after U.S. tariffs and restructuring costs weighed heavily on its first-half results.
Audi has become the latest European carmaker to cut its growth outlook after U.S. tariffs and restructuring costs weighed heavily on its first-half results.
Tariffs Hit Hard in the First Half
Donald Trump’s trade policy imposed steep tariffs of up to 27.5% on imported cars and components, leading to a 37% drop in Audi’s after-tax profit compared to last year.
Lower Deliveries and Plant Restructuring
Audi cut global deliveries by nearly 6% to 783,531 units and undertook a major restructuring, including plant closures, which further increased costs.
Sales in the U.S. Fall Sharply
Sales for Audi and its associated luxury brands, including Bentley and Lamborghini, fell 11.6% in the U.S. during the first half of 2025 due to tariff pressures.
Revenues Rise, But Profits Plummet
Despite a 5.3% increase in revenue to €32.6 billion, Audi’s operating profit plunged by 45% year-on-year to €1.1 billion, with its margin falling to 3.3%.
EV Production Offers a Bright Spot
Production of Audi’s fully electric models, including the A6 and Q6 e-tron, grew by 54.5%, helping offset some losses. EVs now account for 12.8% of total sales.
Adjusted Forecasts for 2025
Audi now expects its annual revenue to be between €65–70 billion, down from its previous €67.5–72.5 billion forecast, with an operating margin revised to 5–7%.
Cash Flow Takes a Hit
Net cash flow fell by 20% to €904 million in the first half of the year, reflecting both weaker sales and the costs of its ongoing restructuring.
Tariff Agreement Impact Still Unclear
Although the EU and U.S. reached a deal to reduce tariffs to 15%, Audi says it is still assessing how the new trade terms will affect its 2025 performance.
