Audi Reports 6.1% Sales Drop in Q1 2026 Amid Global Challenges and Tariff Threats

Audi’s Q1 2026 Performance: Sales and Revenue Decline Amid Global Challenges

Audi reported a 6.1% drop in global sales for the first quarter of 2026, totaling 360,106 units—down from 383,401 units in Q1 2025. The automaker attributed the decline to "challenging market conditions" worldwide.

Regional Breakdown: Sharp Declines in Key Markets

North America (excluding Mexico): Sales plummeted 27% to 35,464 units in Q1 2026, compared to 48,599 units in the same period last year. Audi cited U.S. tariffs and the end of electric vehicle subsidies as primary causes of the decline.

China (including Hong Kong): Sales fell 12% from 144,471 units in Q1 2025 to 127,109 units in Q1 2026. The company blamed "macroeconomic uncertainties, intense competition, and model changes" for the downturn.

Europe (excluding Germany): Sales rose to 123,724 units from 116,815 units, while Germany saw a modest increase to 50,308 units from 48,447 units.

Overseas and emerging markets: Deliveries declined to 23,501 units from 25,069 units in Q1 2025.

Potential Tariff Escalation Adds to Challenges

Audi warned that President Trump’s threat to raise tariffs to 25% could further exacerbate its struggles in the U.S. market. The automaker is pinning its hopes on the redesigned Q7 and all-new Q9, expected to launch later this year, to revive demand among American consumers.

Impact of Geopolitical Tensions

Audi also highlighted disruptions caused by the war in Iran, likely referring to logistical challenges stemming from the closure of the Strait of Hormuz, a critical shipping route.

Mixed Performance: European Sales Rise, Plug-in Hybrids Surge

Despite the overall decline, Audi saw a 160% increase in plug-in hybrid sales, surpassing 30,000 units—a bright spot in its Q1 2026 performance.

Audi Group’s Financial Performance: Revenue and Profit Decline

The Audi Group reported a 6.1% drop in total car deliveries, from 388,756 units in Q1 2025 to 364,877 units in Q1 2026. The group’s combined revenues fell to €14.2 billion ($16.6 billion) from €15.4 billion ($18.0 billion) in the prior year. Operating profit also declined to €588 million ($688 million) from €537 million ($628 million), with an operating margin of 4.2% compared to 3.5% in Q1 2025.

After taxes, the group’s profit dropped to €559 million ($654 million) from €630 million ($737 million). Net cash flow improved to €883 million from a negative €61 million in Q1 2025.

Audi CEO Gernot Döllner on Market Challenges

"In a world where our customers’ expectations are increasingly diverse from region to region, it is clear the ‘world car’ business model is becoming less and less viable." — Audi CEO Gernot Döllner

Döllner emphasized the need for market-specific solutions, highlighting the AUDI brand in China and the A2 e-tron—a model "designed for and built in Europe"—as key examples of this strategy.

Audi Group Q1 2026 Key Metrics

• Brand Group car deliveries: 364,877 (Q1 2026) vs. 388,756 (Q1 2025)
• Audi brand deliveries: 360,106 (Q1 2026) vs. 383,401 (Q1 2025)
• Revenue (in million euros): €14,178 (Q1 2026) vs. €15,431 (Q1 2025)
• Operating profit (in million euros): €588 (Q1 2026) vs. €537 (Q1 2025)
• Operating margin: 4.2% (Q1 2026) vs. 3.5% (Q1 2025)
• Net cash flow (in million euros): €883 (Q1 2026) vs. -€61 (Q1 2025)
• Profit before tax (in million euros): €763 (Q1 2026) vs. €802 (Q1 2025)
• Profit after tax (in million euros): €559 (Q1 2026) vs. €630 (Q1 2025)