Audi group sees lower sales and profitability this year as worsening conditions in China and US tariffs hamper the carmaker's turnaround efforts.

The German automaker revised its forecast downward, citing a significant slowdown in the Chinese market where demand for premium vehicles has weakened amid economic uncertainty. China accounts for a substantial portion of Audi's global deliveries, making the downturn particularly impactful.

Additional pressure comes from US tariffs on imported vehicles, which increase costs and complicate pricing strategies for the Volkswagen Group subsidiary. These external headwinds arrive as Audi attempts to pivot toward electric vehicles and digital services.

Analysts note the dual challenge of cyclical market weakness and structural trade barriers could delay profitability targets. The company now expects operating margin to fall below previous guidance, underscoring the difficulty of executing a transformation amid geopolitical turbulence.