Audi keeps outlook after Q1 sales rise, excluding tariff impact
Listen to article
Audi, Volkswagen's premium brand, confirmed its full-year outlook on Monday, citing a 12.4% rise in first-quarter revenue driven by strong electric vehicle sales.
Notably, the forecast does not account for potential impacts from US tariffs.
First-quarter revenue to 15.43 billion euros (\$17.49 billion) in january - March compared with 13.73 billion euros a year earlier.
The company expects revenue between 67.5 billion and 72.5 billion euros for 2025, and an operating margin between 7% and 9%.
'Financial implications of import tariffs, particularly in the United States, cannot be conclusively assessed,' Audi said in a statement.
Also excluded from the guidance were any consequences of a labour agreement struck in March with the works council, the company noted.
Audi, which currently has no manufacturing presence in the United States, confirmed that it would decide this year whether to build production capacity there.
Chief Executive Juergen Rittersberger said this could involve building electric vehicles, reflecting a strategic shift amid growing demand.
'We will also have a very close look at electric cars because that's still an area of focus, also in the US,' Rittersberger told reporters.
Audi's EV sales have been a key driver in revenue growth as the company seeks to position itself against premium rivals in an increasingly competitive global market.
Although Audi's global vehicle deliveries declined by 3.4% in the first quarter, sales of its electric models surged by 30.1%, the company said.
In North America, excluding Mexico, deliveries dropped 2.1% to 48,599 units, with Audi noting that several models are awaiting upgrades.
In China, shipments fell by 7% to 144,471 vehicles amid fierce market competition.
Like other European automakers, Audi is facing pressure from new tariffs that are expected to raise vehicle prices by several thousand dollars, adding strain to an industry already grappling with elevated costs and growing rivalry.
Audi currently supplies the US market from its plant in San Jose Chiapa, Mexico, which produces the Q5 SUV and employs more than 5,000 workers.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
8 hours ago
- Business Recorder
European stocks flat as investors await outcome of US-China talks
European shares closed little changed on Tuesday in cautious trade as investors awaited the outcome of the second day of U.S.-China trade talks in London. The continent-wide STOXX 600 index closed unchanged for the second straight day, at 553.12 points. The two-day London meeting between the world's two economic powerhouses was still ongoing, a U.S. Treasury spokesperson said, while a separate U.S. official had said the two sides had ended direct talks. While President Donald Trump's upbeat comments on Monday about the talks had offered some hope the two countries would defuse their bitter trade dispute, the silence about any progress kept a lid on any breakout in stock markets. Any positive breakthrough in the negotiations is likely to provide relief to markets given that Trump's erratic tariff policies and the volatility of Sino-U.S. relations have already scarred both economies, dented supply chains, and cast a shadow over global growth projections. 'There's a lack of clarity on what an actual deal could be,' said Laura Cooper, head of macro credit and investment strategist at Nuveen. 'Until we see a substantial trade deal emerge, attention will be on the end of that 90-day pause and its implications if there isn't a deal in place.' The two countries are trying to revive a temporary truce reached in Geneva that had briefly lowered trade tensions and calmed markets. In European stocks, the financials index, shed 1.4%, led by a near 5% drop in UBS on investor concern that Swiss government proposals could shackle the bank with an additional $26 billion capital mandate. Defense stocks also retreated to an over one-week low. Conversely, energy stocks were the stand-out performer, boosted by higher oil prices. The healthcare sector advanced 1.2%, led by Novo Nordisk, which gained about 6% following a Financial Times report that activist hedge fund Parvus Asset Management was building a stake in the drugmaker. Vaccine makers such as AstraZeneca and Sanofi also climbed, despite the U.S. health secretary dismantling the U.S. Centers for Disease Control and Prevention's vaccine advisory committee. London's FTSE 100 flirted with a record high earlier in the session after fresh data revealed a sharp deceleration in British pay growth through April, coupled with unemployment hitting a four-year peak - strengthening the case for an interest rate cut by the Bank of England. Attention is also on a slew of key economic indicators from the region as well as the U.S., due through the week. 'With U.S. CPI data due on Wednesday, the mood could remain cautious,' said Fiona Cincotta, senior market analyst at City Index. Among other stocks, Bellway jumped 7.8% after the British homebuilder raised its forecast for full-year volume production. Shares of Aberdeen gained 6.3% after J.P. Morgan upgraded the fund manager's stock to 'overweight' from 'neutral'.
Business Recorder
9 hours ago
- Business Recorder
India and US advance toward interim trade deal after four-day talks
NEW DELHI: Indian and U.S. negotiators made progress in their latest round of talks in New Delhi on Tuesday on a bilateral trade deal, having focused on market access for industrial and some agricultural goods, tariff cuts and non-tariff barriers, Indian government sources said. 'The negotiations held with the U.S. side were productive and helped in making progress towards crafting a mutually beneficial and balanced agreement including through achievement of early wins,' one of the sources said. The U.S. delegation, led by senior officials from the Office of the U.S. Trade Representative, held closed-door negotiationswith Indian trade ministry officials headed by chief negotiator Rajesh Agrawal. Both sides discussed increasing bilateral digital trade, by improving customs and trade facilitation measures, the sources said, adding that 'negotiations will continue' for early conclusion of the initial tranche of the trade pact. U.S. President Donald Trump and Indian Prime Minister Narendra Modi had agreed in February to conclude a bilateral trade agreement by fall 2025 and to more than double bilateral trade to $500 billion by 2030. India, US push to finalise interim tariff deal as Trump's deadline nears The two sides are expected to sign an interim agreement by the end of the month, before the expiry of Trump's 90-day pause on reciprocal tariffs on major trading partners, including a 26% tariff on India. Commerce Minister Piyush Goyal, currently in Switzerland for talks with European trade partners, said India is prepared to proceed with the deal by first addressing simpler issues. The next phase of negotiations could tackle more complex matters, with the goal of signing the first tranche of the bilateral trade pact by September or October, the officials added. India resisted U.S. demands to open its markets to wheat, dairy and corn imports, while offering lower tariffs on high-value U.S. products such as almonds, pistachios and walnuts, one of the sources said. India also asked the U.S to revoke its 10% baseline tariff. However, the U.S. side opposed this, noting that even Britain was subject to this under its recent bilateral trade agreement. Trump says US doing 'big deals' with Pakistan, India Additionally, India sought an exemption for its steel exports from a 50% tariff. A potential 26% tariff on India would be devastating to Indian goods - including rice, shrimp, textiles and footwear, which together comprise nearly one-fifth of India's merchandise exports - and could severely hit exports and dampen foreign investment inflows. India has pledged to increase purchases of American goods, including energy products like liquefied natural gas, crude oil, coal and defence equipment. India's exports to the U.S. rose 28% to $37.7 billion in the first four months of 2025, while imports increased to $14.4 billion, widening India's trade surplus, according to U.S. government data.
Business Recorder
11 hours ago
- Business Recorder
Blackstone to invest $500 billion in Europe over next decade
Blackstone plans to invest up to $500 billion in Europe over the next decade, CEO Steve Schwarzman told Bloomberg Television in an interview on Tuesday, underscoring market confidence in the region's prospects. Schwarzman said Europe represents a 'major opportunity' for the world's largest alternative asset manager, which oversees assets worth over $1 trillion. There has been a surge in investor optimism about the region, driven by European governments' push to increase military spending and revive a sluggish private equity market. With U.S. President Donald Trump reshaping global alliances and trade policies, Europe is actively pursuing new avenues for economic growth, potentially creating promising investment opportunities for firms such as Blackstone. The European Union, for example, is ramping up its defense spending to revitalize a sector historically overlooked by private investors. Since 2020, the U.S. and Canada have attracted 83% of all private equity and venture capital-backed aerospace and defense investment, according to S&P. Europe is starting to change its approach, 'which we think will result in higher growth rates. So this has worked out amazingly well for us,' Schwarzman told Bloomberg. Schwarzman supported Trump in the U.S. presidential election last year, according to a report from Axios. He has long been viewed as an ally of the president. Trump's whiplash tariffs have, however, prompted several businesses to optimize their supply chains to reduce U.S. exposure. 'The U.S. administration's tariffs - combined with any retaliatory measures from its trading partners - will deliver a supply shock to the U.S. and a demand shock to the rest of the world, including China and Europe,' said Blerina Uruçi, chief U.S. economist at T. Rowe Price.
