Audi maintains outlook after Q1 sales surge, tariff impact unaccounted for

Audi declared the continuation of its confirmed yearly financial projection while reporting first-quarter revenue growth of 12.4% which resulted from its successful electric vehicle sales. The company declares the guidance operates independently of potential U.S. trade duties effects.

The first quarter revenue growth at Audi reached 15.43 billion euros (USD 17.49 billion) after recording 13.73 billion euros a year earlier during the same period. The company predicts its full-year revenue to increase to 67.5 billion to 72.5 billion euros during 2024 while projecting an operating margin range of 7% to 9%.

Audi declared that they cannot offer definitive assessments regarding financial impacts from import tariffs especially in the United States market. Audi's financial guidance currently does not include the effects from the March agreement between its management team and the works council. 

This year the Audi company will make its decision regarding American plant establishment despite having no US production facilities at present. CEO Juergen Rittersberger explained to reporters that the proposed expansion could involve creating electric vehicles in addition to detailing U.S. market emphasis on electric models.

During the first quarter Audi registered diminished global vehicle deliveries at 3.4% below previous numbers but its electric vehicle production jumped by 30.1%. The North American market except for Mexico reported 2.1% vehicle delivery decline totaling 48,599 shipments during the first quarter mainly because of upgraded forthcoming models. The market competition in China lowered deliveries to 144,471 vehicles while they dropped by 7% in the third quarter.

The U.S. tariffs potentially create challenges for Audi alongside other European car manufacturers as they will raise prices across the market segment while the sector struggles with both excessive costs and intensifying market competition. Audi currently serves the U.S. market primarily through its plant in San Jose Chiapa, Mexico, which produces the popular Q5 model.