Audi AG, a subsidiary of the Volkswagen Group, delivered 340,000 vehicles in H1 in China, remaining firmly last among the top three German luxury car brands.
Sales revenue grew by 14.4 percent to 34.2 billion euros (US$38 billion). Operating profit dropped by over 30 percent to around 3.4 billion euros. Audi attributed the underperformance to hedging against raw materials costs.
Mercedes-Benz saw double-digit growth in revenue and profit during the same period, while BMW sold 1.2 million vehicles. BMW’s price cuts were also bad for Audi.
Audi’s struggle with electrification was also evident too. EV sales increased only 50 percent while Mercedes' doubled. Audi’s new e-tron GT did not attract much attention in China.
The pressure on Audi increased with BMW’s use of the NextGen CLAR platform for its EVs, leaving Audi at a disadvantage. To combat its decline, Audi has entered into a partnership with SAIC Group to develop EVs. The collaboration presents a chance for Audi to regain ground in the EV domain.
