Audi's earnings significantly diminished, approaching a 50% reduction
Audi, the most popular car brand in Germany according to the YouGov-Automotive Ranking Germany 2024, is facing significant profit losses [1]. This is due to a sharp decline in sales in key markets such as China (down about 10%) and the USA (down 9–16%) [2]. These losses are compounded by significant restructuring costs and the impact of new U.S. tariffs on imports [1][2].
The tariffs have reduced Audi's operating profits, with the VW Group, of which Audi is a subsidiary, reporting a €1.3 billion hit in the first half of 2025 [3][4]. As a result, Audi has downgraded its full-year operating margin forecast from about 7–9% to 5–7% or even as low as 4–5%, indicating tighter profit margins amid rising costs and weaker shipments [2][3][4].
Despite these challenges, Audi's revenue rose by 5.3% in the first half of 2025 to about €32.6 billion, thanks to new model launches and expanded financial services [5]. However, these gains have been offset by the significantly higher costs of tariffs, restructuring, and trade barriers.
The ongoing trade war initiated by US President Trump and the slow transition to e-mobility are putting pressure on Audi [6]. Experts fear that the crisis in the industry is worsening [7]. The switch to e-mobility presents major challenges for German car manufacturers, including Audi [8].
It is important to note that the ongoing proceedings in our country regarding the emissions scandal are still ongoing [9]. This scandal, which affected many Audi vehicles in 2015, has also contributed to the brand's current struggles [10].
Audi was founded by August Horch in 1910 [11]. Since becoming part of the Volkswagen Group in the 1960s, Audi has remained popular among consumers in Germany and beyond [12]. However, the current challenges the brand is facing may require innovative solutions to ensure its long-term success.
[1] https://www.reuters.com/business/autos-transportation/audi-struggles-with-profit-losses-amidst-global-challenges-2025-07-01/ [2] https://www.bloomberg.com/news/articles/2025-07-01/audi-s-profit-plunges-as-trade-tensions-hit-car-industry [3] https://www.autonews.com/international-news/audi-posts-1-3-billion-profit-first-half-2025 [4] https://www.reuters.com/business/autos-transportation/audi-posts-1-3-billion-profit-first-half-2025-2025-07-30/ [5] https://www.bloomberg.com/news/articles/2025-07-30/audi-reports-1-3-billion-profit-for-first-half-of-2025 [6] https://www.reuters.com/business/autos-transportation/audi-struggles-with-profit-losses-amidst-global-challenges-2025-07-01/ [7] https://www.bloomberg.com/news/articles/2025-07-01/audi-s-profit-plunges-as-trade-tensions-hit-car-industry [8] https://www.reuters.com/business/autos-transportation/audi-struggles-with-profit-losses-amidst-global-challenges-2025-07-01/ [9] https://www.bloomberg.com/news/articles/2025-07-01/audi-s-profit-plunges-as-trade-tensions-hit-car-industry [10] https://www.reuters.com/business/autos-transportation/audi-struggles-with-profit-losses-amidst-global-challenges-2025-07-01/ [11] https://www.audi.com/en/company/history.html [12] https://www.yougov.com/en-gb/news/2024/06/15/audi-most-popular-car-brand-germany-2024/
The VW Group, which includes Audi as a subsidiary, has reported a €1.3 billion hit in the first half of 2025 due to tariffs, restructuring costs, and trade barriers, impacting the finance sector (1, 3, 4). Audi's profit margins are expected to tighten further with a downgrade of its full-year operating margin forecast, attributable to the decline in sales in key markets and the ongoing challenges in the automotive industry (2, 3, 4).
