Audi has reported a tough first nine months of 2024, with profits down, revenue down and deliveries down.
The German brand blames the falls on a “challenging” market – notably among electric cars, the increased competition from the likes of cheaper Chinese offerings and production output being slowed by limited parts availability.
A sales dip in China – down 8.5% to 477,247 sales – has also heavily impacted the brand, given China is its biggest market outside of Europe. Compounding the situation, sales in Europe were down 9.8% to 503,746 cars.
Overall, Audi sold 1,235,590 vehicles, a fall of 10.9%, in the first nine months of 2023. This included 115,788 EVs, which was 5.8% down.
However, Audi CEO Gernot Döllner remained buoyant, with the brand having launched or updated 14 models – including the new A5 – this year. “We are positioning Audi in such a way that we can once again achieve the extraordinary,” he said.
Nevertheless, the firm's sales challenges are evident on UK forecourts, where Audi has been adding some big discounts to a huge swathe of its range. The largest discounts can be found at the top of its line-up, with dealers taking off as much as £9063 (an 11.2% discount) from the price an A8 50 TDI Quattro Sport Tiptronic, according to the What Car? Target Price Index of Autocar's sibling publication.
The Audi Group – which includes the Audi brand, Bentley and Lamborghini – also recorded a heavy dip, with sales of 1,251,381 representing a 10.9% year-on-year fall.
This contributed to a 55% drop in profits to €2088 million (£1741m), revenue falling 8.2% to €46,262m (£38,533m) and a reduction in its operating margin from 9.1% to 4.5%.
Elsewhere, the group spent €1.2bn (£1.0bn) restructuring Audi’s Brussels plant, another heavy expense.
Despite the slump, the group’s 2024 forecast remains unchanged.
CFO Jürgen Rittersberger said: “Audi is consistently working on its financial performance against the backdrop of a complicated macroeconomic situation and stiffer competition. Our current focus is on further increasing our efficiency and competitiveness.
“At the same time, we are launching numerous new models onto the market during a challenging transition phase, which will gradually impact volumes and earnings from 2025.”
Add your comment