Audi Boosts Profitability Amidst Cost-Cutting Drive

Audi anticipates improved profitability in 2026, projecting an operating margin between 6% and 8%, a significant increase from 5.1% in 2025. This optimism stems from an ongoing performance program focused on cost reduction and enhanced efficiency.

The German automaker plans to cut up to 7,500 jobs over the next few years, a measure expected to save more than 1 billion euros annually in the medium term. Approximately two-thirds of the planned 6,000 job reductions by 2027 are already in progress or agreed upon.

Audi has recently completed a significant portfolio refresh, introducing 20 new models in the past two years, with over half being fully electric. The company's product offensive continues in 2026 with new models like the Audi Q9 and A2 e-tron.

To strengthen its market position, Audi is implementing tailored strategies in China and the U.S., including new combustion engine models for the U.S. and China-exclusive vehicles. However, the Chinese market has shown slower-than-expected performance in early 2026.

Financial headwinds, including U.S. tariffs, intense competition in China, and restructuring costs, impacted earnings in the past. Tariffs alone reduced operating profit by 1.2 billion euros in 2025. Audi is also considering investing in a potential U.S. plant later this year.

Despite a 2.9% decline in overall vehicle deliveries last year, driven by a 5% drop in China, deliveries of all-electric Audi models surged by 36% to a record over 223,000 vehicles in 2025.