Audi slashes 2026 revenue forecast by 5 billion euros as China profit collapses and Neckarsulm plant hangs in balance

Revenue forecast slashed by up to 5 billion euros

Audi, the Volkswagen-owned luxury group that also includes Lamborghini, Bentley and Ducati, lowered its 2026 earnings outlook on Monday, citing a worsening Chinese market and weak US sales amid intense price competition and tariffs. The Ingolstadt-based company now expects full-year revenue between 58 billion and 63 billion euros, compared with a previous range of 63 billion to 68 billion euros announced in April. The operating margin expectation was also trimmed, pushing the projected net profit lower. The downward revision represents a 5-billion-euro reduction at the top of the guidance band and shows how quickly demand has softened in two key markets.

The second quarter already reflected the strain: net profit after tax fell roughly 21 percent to 563 million euros. The drop is moderate relative to parent Volkswagen, where quarterly profit collapsed by about a third. Audi attributed part of the cushion to early savings from an ongoing cost-restructuring programme and lower provisions for restructuring compared with the prior year.

Wir haben Möglichkeiten, an beiden Standorten die Effizienz zu steigern. Wenn alle mithelfen, können wir eine Zukunft für Neckarsulm organisieren.

China shock: profit contribution plummets

The China business, booked via local joint ventures in the financial result, contributed only 73 million euros in the entire first half, down from almost four times that amount a year earlier. Sales have fallen sharply in both China and the United States, where Audi is facing intense price competition and weaker consumer demand. The China result once acted as a reliable profit engine for the premium brand; its near-disappearance has forced management to accelerate existing savings measures.

Neckarsulm plant faces further capacity cuts

The cost-cutting drive is now intensifying pressure on Audi's Neckarsulm site, one of four Volkswagen Group plants under review. The factory currently builds only combustion-engine vehicles and has an annual capacity of 225,000 units, down from 300,000 a few years ago. According to reports, that capacity could be progressively shrunk to 150,000 vehicles. The night shift at the plant has already been eliminated, a move CFO Jürgen Rittersberger described as a permanent adjustment to market conditions. According to Handelsblatt, cutting output to 150,000 units would halve the site's capacity compared with 2019.

Nevertheless, Volkswagen Group CEO Oliver Blume has publicly stated that plant shutdowns remain a last resort. Audi's finance chief Rittersberger echoed that view, promising that efficiency improvements can make both the Ingolstadt and Neckarsulm sites competitive if all sides cooperate.

Es gibt intelligentere Lösungen, als Werke zu schließen. Das ist immer die letzte Option.

Cost savings and second-half hopes

Despite the bleak first-half figures, Audi is pinning its turnaround hopes on the second half of the year, which is traditionally stronger. New model launches and gradually lower costs from the restructuring programme are expected to lift earnings. Rittersberger conceded that the savings already implemented have not yet been sufficient, but he described them as work in progress that is starting to show effects. Whether the combination of new products and leaner structures can offset the loss of China's profit contribution remains uncertain. The next six months will test whether Audi can stabilise its performance or faces further downgrades.