Audi issues subdued outlook for operating margin, said it will bring 10 hybrids by the end of 2025
- Audi said that by the end of 2025, it will have the youngest portfolio among its competitors.
- 2025 will bring two important model series A6 (launched in March) and Q3 (to be launched in summer). Audi also presented the the plug-in hybrid version of the Audi A5 in March.
- It plans to bring a total of ten new plug-in hybrid models by the end of 2025.
- Audi expects revenue of between 67.5 and 72.5 billion euros (+4.7% to +12.4%) and operating margin of between 7% and 9% (2024: 6%).
- Audi CFO Juergen Rittersberger said they are considering âthe extent to which we will have to pass on at least some of the tariffs to our customers in the form of price increasesâ. Juergen added that the goal was to find a âsweet spotâ between price increases and production volume adjustments.
Assessment
Audiâs focus on hybrids should help the company navigate the slowdown in demand for EVs. Renault was able to beat its 2024 earnings estimates courtesy of new hybrids. They hybrids should also raise Audiâs profile in the midsize premium segment. Until the launch of Audi Q5 hybrid, Audi was the only German car that didnât offer an hybrid in the midsize premium segment. Its 2025 outlook is also better than that of Mercedes or BMW. Mercedes expects 2025 group revenue to be slightly below the prior-year level.