Audi keeps outlook after Q1 sales rise, but tariff impact not included

Volkswagen’s premium brand Audi on Monday (May 5) kept its full-year guidance, with the caveat that any impact from US tariffs was not included, after its first-quarter revenue rose 12.4 per cent on higher sales of electric models.

Quarterly revenue rose to 15.43 billion euros (S$22.52 billion) in January-March, compared with 13.73 billion a year earlier, it said in a statement.

The company expects full-year revenue of between 67.5 billion and 72.5 billion euros, up from 64.5 billion in 2024, and an operating margin of 7 per cent-9 per cent.

“Financial implications of import tariffs, particularly in the United States, cannot be conclusively assessed,” Audi said, adding that implications of a March agreement between Audi’s management and the works council were also not yet taken into account in the guidance.

Audi, which has no factories in the United States, confirmed it would decide this year whether to set up production capacity there.

CEO Juergen Rittersberger told journalists that this could include the production of EVs.

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“We will also have a very close look at electric cars because that’s still an area of focus, also in the US,” said Rittersberger.

While the company delivered 3.4 per cent fewer vehicles globally in the first quarter, unit sales of its electric cars rose 30.1 per cent.

In North America, excluding Mexico, Audi’s deliveries fell 2.1 per cent to 48,599 vehicles, as many models there are due to be upgraded, the company said.

Deliveries in China fell 7 per cent to 144,471 vehicles in the quarter, hit by intense competition, the company added.

Like other European carmakers, Audi has been dealt a severe blow by the tariffs, which are expected to raise car prices by thousands of dollars and rattle an automobile sector already struggling with high costs and intensifying competition.

Audi currently serves the US market through a plant in San Jose Chiapa, Mexico, which makes the popular Q5 model and employs over 5,000 people. REUTERS