Audi cuts revenue forecast as profit falls and China sales weaken
Audi cuts revenue forecast to €58–63bn and lowers margin guidance after Q2 profit fell; company cites weak China demand, US market pressure and intensifying price competition.
Audi cuts revenue forecast and trims margin outlook after profit decline
Audi said on Monday it has cut its full-year revenue forecast and trimmed its profitability guidance after reporting a decline in second-quarter results, marking a setback for the Volkswagen subsidiary. The company now expects group revenues of €58–63 billion for the year, a reduction of €5 billion from its April projection, and sees operating margins narrowing to roughly 5–7 percent. The revised outlook and the company’s warning were driven by weaker sales in China and the United States alongside intense price competition in key markets.
Audi lowers full-year revenue and margin guidance
Audi’s updated guidance narrows the revenue band to €58–63 billion for 2026 and reduces expected profitability by about one percentage point compared with the earlier forecast. The company said the changes reflect a tougher market environment than assumed in April and come despite measures already put in place to control costs. The forecast applies to Audi as a sub-group of Volkswagen and therefore includes the high-end brands Lamborghini, Bentley and Ducati.
Second-quarter after-tax profit drops 21 percent
The automaker reported second-quarter after-tax profit of €563 million, down roughly 21 percent year on year. Management emphasized that the decline in quarterly earnings underlines the pressure on margins as competitive pricing and weaker volumes combine to squeeze profitability. Audi noted that the first half results capture the effect of current market dynamics and that short-term earnings will be affected even as cost actions begin to take hold.
China sales slump and price war hit results
Audi singled out its China business as a primary drag on results, saying contributions from joint ventures in the market fell sharply in the first half. China generated €73 million for Audi in the period, a fraction of the contribution seen in the same period last year when results were almost four times higher. Management also pointed to softer US demand and intensifying price competition globally as key factors eroding revenue and margin performance.
CFO signals deeper restructuring and faster decision-making
Audi’s finance chief, Jürgen Rittersberger, said existing savings measures are showing effect but are insufficient to offset current headwinds. “We must be more competitive and efficient, work on cost structures and speed up decision-making,” he said, adding that further action is required to restore margin momentum. Rittersberger expressed hope that new product introductions and additional cost reductions will improve the picture in the second half of the year.
Volkswagen group pressures raise prospect of plant adjustments
The revision at Audi comes amid broader weakness at parent Volkswagen, which reported a sharper profit contraction in its latest quarter and is preparing a group-wide savings package. Company executives have signaled that substantial cost measures are being considered to stabilise group earnings, and media reports have suggested potential job cuts and capacity reductions across brands. Local reporting has flagged the Audi plant in Neckarsulm as one site that could see capacity adjustments, though Volkswagen CEO Oliver Blume has publicly said plant closures should be a last resort and that the group seeks “smarter solutions.”
Second half outlook depends on models, costs and market stability
Audi is pinning its hopes for a recovery in the second half on new model launches, further efficiency gains and a traditionally stronger latter half of the year. Management acknowledged uncertainty around timing and magnitude of any rebound and said that continued market volatility—especially in China—will be decisive. Investors and suppliers will watch closely for the group’s next steps on cost reductions and any concrete measures tied to Volkswagen’s planned savings programme.
The company’s revised revenue forecast and margin guidance mark a notable recalibration for Audi and add to mounting pressure across the German car industry as manufacturers contend with shifting demand patterns, competitive pricing and the high costs of transitioning product lines.
