Audi Group: Good performance in the first half of the year despite major challenges
- CFO Jürgen Rittersberger says: “In the first six months, Audi has shown financial stability and is fully within the target corridor for operating return on sales”
- Member of the Board of Management for Sales Hildegard Wortmann: “Strong growth in all major sales regions – with more than 50 percent more electric cars delivered worldwide”
- Revenue increased to €34.2 billion in the first half of 2023, operating profit was €3.4 billion with net cash flow of €1.9 billion
- The Middle East showcases robust demand for the luxury and premium segment, with increasing interest in fully electric models
Dubai, UAE (16 August 2023) – After a strong start to the year, the Audi Group continued its successful trajectory in the first half of 2023. Between January and June, the brand group delivered a total of 919,548 Audi, Bentley, and Lamborghini vehicles. This corresponds to an increase of more than 15.3 percent compared with the previous-year period. The Group increased its deliveries as revenue grew by 14.4 percent to €34.2 billion, leading to an operating profit of €3.4 billion. Audi fully electric models performed exceptionally well, with over 50 percent increase to 75,647 vehicle deliveries proves that the Four Rings is on the right track with its systematic electrification strategy.
“Audi has shown a strong financial performance in the first six months and is fully within the target corridor for operating return on sales,” says Audi Chief Financial Officer Jürgen Rittersberger. “Despite major challenges, this is a very good basis for the upcoming model offensive with more than 20 new models, of which more than ten will be fully electric.” The Audi Q6 e-tron series will kick off the offensive and marks the first time that e-mobility will come from Ingolstadt.
Deliveries: Audi brand celebrates its best June of all time
In the first half of 2023, the brand group delivered a total of 919,548 vehicles. This corresponds to a significant increase of 15.3 percent compared to the previous-year period (797,587 vehicles). The Audi brand recorded a significant increase in deliveries (907,111 vehicles) of almost 16 percent in the first half of 2023 compared with the first half of 2022, thereby continuing its growth path. Audi achieved its best June ever in terms of customer deliveries, with a total of 182,075 vehicles sold.
The Audi brand is systematically continuing its growth path for electric models. In the first half of 2023, it delivered 75,647 (H1 2022: 50,033) fully electric models, with the Audi Q4 e-tron making the greatest contribution (+163.7 percent). Overall, this corresponds to growth of 51.2 percent. As a result, the share of electric vehicles in the brand group’s deliveries rose to 8.2 percent.
Audi’s performance in the Middle East market, has been exceptional, with a remarkable 26% growth in first half of 2023, making it the strongest half year results since 2015. This reflects a significant contribution to the brand’s overall global success. The growth clearly demonstrates the Middle East’s importance as a thriving region within Audi’s expansion strategy.
Audi’s performance in the region in specific segments has been outstanding as well. Notably, A, B & C Segment Sedans have performed admirably, collectively achieving a YoY increase of 62%. The Audi Q5 has seen an impressive nearly three-digit percentage increase compared to the same period last year, demonstrating its popularity. Meanwhile, the e-tron GT continues to grow within our electrification line-up, boasting a 27% increase compared to the previous year.
The substantial increase in Audi’s presence and sales in the Middle East reflects the region’s growing demand for luxury vehicles, especially with a rising interest in fully electric models. This achievement further solidifies Audi’s position as a leading provider of premium mobility in the Middle East and reinforces its positive trajectory on the global stage.
Hildegard Wortmann “Strong growth in all sales regions”
Hildegard Wortmann, Member of the Board of Management for Sales and Marketing, summarizes: “After a very good start to the year, we are concluding the first half of 2023 with strong growth in all major sales regions. Thanks to a great team effort and operational excellence, we increased deliveries to Audi customers by around 16 percent in the first half of 2023. In particular, the growth of over 50 percent for our fully electric models shows that we are successful on our path to becoming a provider of sustainable premium mobility.”
Strong financial performance in the first half of the year
Thanks to good delivery figures, the brand group also posted strong revenue growth in the first half of 2023. Revenue increased by 14.4 percent to €34,169 (H1 2022: 29,869) million. The share of EU taxonomy-aligned revenue increased once again, reaching 14.9 percent (H1 2022: 12.3 percent). CFO Jürgen Rittersberger says: “By increasing green revenue in the first half of the year, we once again demonstrated that we are making good progress with the implementation of our ESG strategy.”
Forecast for 2023 largely confirmed
For 2023, the Audi Group continues to expect deliveries of between 1.8 and 1.9 million vehicles and revenue of between €69 and €72 billion. The operating return on sales is expected to remain in the range of 9 to 11 percent. Based on current planning, the Audi Group expects net cash flow to be at the lower end of the forecast range of between €4.5 billion and €5.5 billion. As a result of higher upfront investments in future technologies, the research and development cost ratio is now expected to be slightly above the corridor of 6 to 7 percent.
Ambitious program to improve competitiveness
In 2030, the Audi Group is planning to generate a return on sales of around 14 percent per year. To achieve this goal, Audi has initiated an ambitious performance program. The main focus is on improving product profitability, especially for electric vehicles. Other measures include a strong revenue positioning, particularly in terms of price enforcement, aftersales, and new business models.
- Further information can be found here: Quarterly Update and Fact Pack for the first half of the year