Audi lowers revenue forecast
German automaker Audi has lowered its financial forecast for 2026 after weaker sales in China and North America hurt its earnings during the first nine months of the year.
The Audi Group reported an operating profit of P1.15 billion from January to September, down from P1.56 billion during the same period last year. Revenue declined to P42.06 billion from P48.38 billion, while its operating margin narrowed to 2.7 percent from 3.2 percent.
The company now expects full-year revenue of P55 billion to P59 billion, with an operating margin of 3 to 5 percent. Its net cash flow forecast stands at P2.5 billion to P3.5 billion.
Audi attributed the weaker performance to tougher competition, higher energy costs and US tariffs. The slowdown in China’s automotive market, particularly among gasoline-powered vehicles, also affected its business.
Worldwide deliveries of the Audi brand fell 11.4 percent to 1,042,150 vehicles during the nine-month period. China recorded the steepest decline among its major markets, with sales down 24.5 percent to 328,042 vehicles.
North American deliveries, excluding Mexico, dropped 17.3 percent to 128,749 vehicles.
European markets performed better. Sales in Germany increased 1.8 percent to 152,011 vehicles, while deliveries across the rest of Europe rose 1.3 percent to 360,649 vehicles.
Audi’s electric vehicle business also faced mixed results.
Worldwide deliveries of fully electric Audi models fell 12 percent to 143,748 vehicles. However, electric vehicle sales in Germany increased 39.1 percent, while China recorded an 84.7 percent gain.
Plug-in hybrids performed considerably better, with worldwide deliveries more than doubling after a 103 percent increase.
Despite the weaker earnings, Audi reported higher net cash flow of P2.44 billion compared with P2.11 billion a year earlier.
The company has begun further cost reductions and changes to its operations. It also plans to spend more on software, artificial intelligence and driver assistance systems.
Audi chief financial officer Jürgen Rittersberger said the business environment had deteriorated significantly during the third quarter and that the company needed to strengthen its cost-cutting efforts.
The company scheduled the introduction of its Q9 flagship SUV in Europe for early November, while the compact A2 e-tron electric vehicle is expected to reach European dealerships in December.
Audi said the A2 e-tron required 21 fewer months of development than comparable previous models. Production takes place at its Ingolstadt facility in Germany.
Demand for the new RS 5 plug-in hybrid has been stronger than expected. Audi reported that its planned production for 2026 was already sold out, with European orders nearly twice the anticipated volume.