German automaker Audi has lowered its financial forecast for 2026 after weak sales in China and North America weighed on earnings over the first nine months of the year.
The Audi Group posted an operating profit of P1.15 billion for the January-to-September period, down from P1.56 billion a year earlier. Revenue slid to P42.06 billion from P48.38 billion, and the operating margin narrowed to 2.7 percent from 3.2 percent.
The automaker now projects full-year revenue of P55 billion to P59 billion, with an operating margin between 3 and 5 percent. Net cash flow for the year is expected to land between P2.5 billion and P3.5 billion.
Audi pointed to intensifying competition, rising energy costs and US tariffs as key drags on performance, alongside a broader slowdown in China's auto market that has hit gasoline-powered vehicles especially hard.
Global deliveries of the Audi brand dropped 11.4 percent during the nine-month stretch, totaling 1,042,150 vehicles. China posted the sharpest decline among major markets, falling 24.5 percent to 328,042 vehicles, while North American deliveries excluding Mexico slid 17.3 percent to 128,749 vehicles.
Europe offered a brighter picture. German sales climbed 1.8 percent to 152,011 vehicles, and deliveries across the rest of the continent grew 1.3 percent to 360,649 vehicles.
The company's electric vehicle segment showed mixed momentum. Worldwide deliveries of fully electric Audi models fell 12 percent to 143,748 units, even as EV sales surged 39.1 percent in Germany and 84.7 percent in China. Plug-in hybrids fared much better, with global deliveries more than doubling on a 103 percent jump.
Despite softer profits, Audi's net cash flow actually improved, rising to P2.44 billion from P2.11 billion the previous year.
The automaker said it has launched additional cost-cutting measures and operational changes, while directing more investment toward software, artificial intelligence and driver-assistance technology. Chief Financial Officer Jürgen Rittersberger said business conditions deteriorated sharply in the third quarter, making tighter cost discipline essential going forward.
On the product front, Audi is set to roll out its Q9 flagship SUV in Europe in early November, followed by the compact A2 e-tron electric vehicle reaching European dealerships in December. The A2 e-tron was developed 21 months faster than comparable past models and will be built at Audi's Ingolstadt plant in Germany.
One bright spot has been the new RS 5 plug-in hybrid, which has drawn stronger-than-expected demand. Audi said its full 2026 production run for the model is already sold out, with European orders nearly double initial projections.
Source: Daily Tribune
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