Audi increased sales and revenue significantly last year, but made significantly less profit. Earnings after taxes fell by 12 percent to 6.3 billion euros – mainly due to raw material hedging transactions, as CFO Jürgen Rittersberger said on Tuesday in Ingolstadt. The outlook for the current year is poor: Due to several model changes after two years without a new model, Audi expects a decline in sales of 69.9 billion to 63 to 68 billion euros.
“2024 will be an even more challenging year than 2023” and “a year of transition for Audi,” said Rittersberger. Competition is becoming fiercer and discounts will have to be granted in one place or another. Investments increased. The discontinuation of model series and the launch of the Audi Q6 e-tron, the A6 e-tron and the A5 led to higher costs and temporarily impacted sales. In addition, Audi is experiencing supply problems with engines.
The phase-out of combustion engines is targeted for 2033
CEO Gernot Döllner (55) is fundamentally sticking to the dates for his combustion engine phase-out, but at the same time emphasized: “We can react to different customer requirements, we are well and flexibly positioned.” The future of the car is electric; Audi will present its last new combustion engine model in 2026 and is aiming for an exit in 2033, said Döllner. But the EU will review its ban on new combustion engines planned for 2035 in 2026. You will be able to react very flexibly to wave movements.
By the end of the decade, Audi wants to sell as many electric cars as combustion engines and therefore be just as profitable, said Döllner. In 2023, only 9 percent of the 1.9 million Audis sold were fully electric. Audi does not want to offer a fully electric model in all core segments until 2027.
1.9 million cars sold in 2023
Audi currently offers three fully electric model series on three different platforms. Immediately before the annual press conference, Audi presented the Q6 e-tron electric SUV – the first Audi vehicle at the event Porsche PPE platform developed together for luxury cars. The launch of the Q6 e-tron was delayed by two years due to software problems. The first fully electric car from the main plant in Ingolstadt has a range of up to 670 kilometers and comes in Germany and the USA on the market in the second half of 2024. Next year, the Q6 e-tron will also be available at Audi’s new electric car factory in Changchun China be built.
Last year, Audi increased its sales by 17 percent to 1.9 million cars and revenue by 13 percent to 69.9 billion euros. The sales margin in the core business fell to 9 percent – that is, out of every 100 euros in sales, 9 euros remained operating profit before interest and taxes. In the current year, the margin should be between 8 and 10 percent with lower sales.
US business should grow
Audi employs 53,000 people in Germany and 87,000 people worldwide. An important goal for the next few years is also to strengthen business in the USA, said Döllner. He wants to “build North America into a third pillar.” Last year, Audi sold more than 42 percent of its cars in Asia, just under 42 percent in Europe and just under 15 percent in North America. As part of the VolkswagenGroup, Audi will “bring additional products to North America”. It has not yet been decided whether Audi will build a model in the USA.