Audi Q1 Profit Falls Again Amid Tariffs, China Slowdown

MUNICH, May 5 (Bernama-dpa) -- German carmaker Audi reported on Tuesday another decline in earnings in the first quarter, as the Volkswagen Group subsidiary faced mounting pressure from United States (US) tariffs and weakening business in China, reported German Press Agency (dpa).

Net profit fell just over 11 per cent to €559 million (US$653 million) in the January–March period, Audi said, marking the fourth consecutive decline in the first quarter.

By comparison, the carmaker posted net profit of €2.9 billion (US$3.39 billion) in the first three months of 2022.

Conditions have since deteriorated across the global auto industry, with Audi hit hard.

US tariffs weighed on results by a low triple-digit million euro figure, chief financial officer Jürgen Rittersberger said. 

The company is not yet able to assess the impact of the latest announcement by US President Donald Trump, in which he threatened to hike tariffs on EU-made cars even higher to 25 per cent. 

Excluding tariffs, Audi would have achieved growth in pre-tax profit in the quarter, Rittersberger added.

Audi’s ongoing challenges in China also dragged on performance. Income from its China business fell sharply to €28 million (US$33 million) from €170 million (US$199 million) a year earlier. 

Like other German carmakers, Audi is grappling with intense competition in the Chinese market.

China's phase-out of subsidies for electric vehicles has also dampened demand. 

Overall revenue declined to €14.2 billion (US$16.6 billion) from €15.4 billion (US$18 billion) a year earlier.

The figures cover the Audi Group, which includes the core Audi brand as well as Bentley and Lamborghini.

-- BERNAMA-dpa