Audi's Sales And Revenue Both Dropped, And Trump Could Soon Make It Worse

• Audi had a rough first quarter as sales fell 6.1%.
• Automaker saw large declines in China and US.
• Company is banking on Q7 and Q9 to be a success.

Audi's losing streak continues as the automaker reported a disappointing first quarter. Sales fell 6.1% to 360,106 units globally as the company navigated "challenging market conditions."

North American sales (excluding Mexico) plummeted 27% to 35,464 units. The company said the decline was "primarily attributable to US tariffs and the end of subsidies for electric cars in the USA."

More: Audi's Biggest SUV Yet Reveals Its True Face, Sets Its Sights On X7 And Escalade

Unfortunately for Audi, the situation could get worse as President Trump has threatened to increase tariffs to 25%. However, the automaker is gearing up to launch the redesigned Q7 and all-new Q9 this year, and they're expected to appeal to Americans.

Chinese sales (excluding Hong Kong) fell from 144,471 units last year to 127,109 this time around. That's a decline of 12% and the company blamed this on "macroeconomic uncertainties, a market environment that remains highly competitive, and model changes."

Audi Q1 2026 Deliveries

Audi also said they're being impacted by the war in Iran. The company didn't elaborate, but they're likely referring to delivery issues caused by the closure of the Strait of Hormuz.

While there was a lot of bad news, European sales were up and the company sold more than 30,000 plug-in hybrids. The latter figure represents a nearly 160% increase from a year ago.

Zooming out, Audi Group sales fell 6.1% as Audi's lackluster performance was echoed by a decline in Bentley sales. Bentley, Lamborghini, and Ducati also saw declining revenues.

Speaking of which, the Audi Group had combined revenues of €14.2 ($16.6) billion and an operating profit of €588 ($688) million. However, after taxes, the profit falls to €559 ($654) million.

Audi CEO Gernot Döllner noted the challenges and said, "In a world where our customers' expectations are increasingly diverse from region to region, it is clear the 'world car' business model is becoming less and less viable." Instead, he believes the company needs "market-specific solutions and models" such as the AUDI brand in China as well as the A2 e-tron, which is "designed for and built in Europe."

Audi Group Q1 2026 Result