Audi is struggling. Will a fleet of new models turn it around?

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Audi's latest financial report reveals a rocky year. With deliveries down nearly 11% and revenue falling, the automaker faces a challenging economic landscape. To counteract these declines, Audi is doubling down on a robust lineup of new vehicles and initiatives to drive efficiency, hoping these moves will shift its fortunes in 2025.

A sales slump at home and abroad

In the first nine months of 2024, Audi delivered 1.2 million vehicles—a 10.9% drop year-over-year. The decline hit electric vehicles (EVs) too, albeit less severely, with sales falling by 5.9% across markets.

The decline was most severe in the United States, where Audi reported a 16.8% decline in deliveries. The picture wasn’t much better in Europe or China, where the automaker reported delivery declines of 9.8% and 8.5%, respectively.

In a statement, the company attributed the declines to “difficult economic conditions, high competitive pressure, and expected restructuring expenses,” referencing the planned closure of its Brussels production plant.

Banking on new models to spark a recovery

Despite the sales slump, Audi is betting on a sweeping product push to turn things around. So far, it has introduced 15 new models this year, including fresh versions of the A5 and Q5. The company’s CEO, Gernot Döllner, believes the expansive new fleet can strengthen Audi’s market position as they roll out in 2025.

“In addition to the numerous model launches, we are clearly focusing on lean structures and driving change within the company,” said Döllner. “We are positioning Audi in such a way that we can once again achieve the extraordinary.”

In China, where state-backed automakers like BYD are aggressively capturing market share, Audi is working with its partner SAIC to develop customized models for the Chinese market. Across markets, models like the Q5 Sportback and A6 e-tron are part of Audi’s ambitious push, aiming to reach customers with a mix of electric and high-efficiency combustion vehicles.

Financials signal a bumpy road ahead

Revenue for the first three quarters came in at €46.3 ($49.7) billion, marking an 8.2% drop from last year. Operating profits were similarly hit, down 55% to €2.1 ($2.3) billion. Audi’s net cash flow, however, remained stable at €3.8 ($4.1) billion, providing some resilience in the face of financial pressures.

Final thoughts

Despite their efforts, Audi has said that its new fleet of vehicles is unlikely to improve delivery figures before the end of the year, making performance in 2025 even more critical. As automakers race to drive down costs, both for themselves and consumers, it’s critical that Audi remains responsive to consumer demands. Are drivers still sold on the image of high-end German quality that Audi offers? Next year will likely hold the answer to that question.

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