Audi Q1 2026: Profit Up, Deliveries Down, New Models Coming

Audi reported mixed financial and sales performance for the first quarter of 2026, navigating a period marked by global geopolitical and economic challenges. While the company saw an increase in operating profit and strong growth in plug-in hybrid vehicle deliveries, overall vehicle sales declined, particularly in North America and China.

Despite these headwinds, Audi is pushing forward with a strategy focused on market-specific vehicle solutions and new model introductions across its key global regions.

Financial Performance and Market Challenges

The Audi Group generated 14.2 billion euros in revenue during the first quarter of 2026, an approximate 8% decrease compared to the previous year. However, operating profit rose by nearly 10% to 588 million euros, improving the operating margin to 4.2%. Net cash flow also saw a significant increase, reaching 883 million euros, up from a negative 61 million euros in the first quarter of 2025.

CFO Jürgen Rittersberger noted the accelerating pace of global change impacting the business, emphasizing the need for urgent action on cost structures and efficiency measures. The overall Audi Group, which includes Bentley and Lamborghini, delivered 364,877 vehicles, a 6.1% reduction from the same period last year. Bentley reported a negative operating result, while Lamborghini and Ducati also saw declines in revenue and profit compared to their strong performance in the prior year.

Electrified Vehicle Sales and Regional Trends

The Audi brand delivered 360,106 vehicles globally in Q1 2026. A notable highlight was the performance of plug-in hybrid (PHEV) models, with over 30,000 units delivered, representing a year-on-year increase of nearly 160%. In contrast, global demand for fully electric (BEV) models experienced a slight decline to approximately 42,000 vehicles, attributed partly to changes in subsidy policies in the USA and China. Electrified vehicles, combining both PHEVs and BEVs, accounted for 20% of Audi's total deliveries.

Regionally, Audi saw growth in Europe, with deliveries increasing by nearly 6% to 123,724 vehicles, and in its home market of Germany, where sales rose by almost 4% to 50,308 units. In Germany, BEV deliveries surged by 41% to 12,223 units. Conversely, North American deliveries, excluding Mexico, fell by 27% to 35,464 vehicles, primarily due to US tariffs and the cessation of electric car subsidies. China also experienced a 12% decline in deliveries, totaling 127,109 vehicles, influenced by macroeconomic uncertainties and intense market competition, though BEV sales in China increased by nearly 28%.

Future Product Strategy and Market Focus

Audi is implementing a product offensive with new models tailored for specific markets. For North America, the new Audi Q9, a full-size flagship SUV, is scheduled for launch this summer. Europe will see the introduction of the Audi A2 e-tron, an electric entry-level model, in the fall. In China, the AUDI E7X, the second model from Audi's China-exclusive sister brand, was unveiled in April, and the company is strengthening its partnership with SAIC to establish a new AUDI Innovation and Technology Center in Shanghai.

Additional new models planned for 2026 include the new Audi Q7, an updated Audi Q4 e-tron, and several other vehicles specifically for the Chinese market. CEO Gernot Döllner emphasized the necessity of market-specific solutions and new approaches to development and branding to gain a competitive edge in a diverse global market.

Despite the challenges reflected in the Audi Q1 2026 results, Audi is adapting its strategy to global market dynamics by focusing on targeted product launches and regional growth initiatives. Owners and prospective buyers can anticipate a refreshed model lineup designed to meet diverse regional demands, particularly in the SUV and electrified vehicle segments.