Audi expects profitability to improve this year as it continues implementing a performance program aimed at cutting costs and boosting efficiency. The German luxury automaker, part of Volkswagen Group, projects an operating margin between 6% and 8% for 2026, up from 5.1% in 2025. This improvement comes as Audi works to enhance its competitiveness amid industry headwinds.

The company has faced significant challenges including U.S. tariffs, intensifying competition from Chinese automakers, and restructuring costs. Audi's portfolio includes premium brands such as Bentley, Lamborghini, and Ducati, which have all been affected by these market pressures. The automaker's cost-cutting initiatives are designed to strengthen its position in both traditional and electric vehicle segments.

The margin improvement target reflects Audi's efforts to streamline operations and reduce expenses across its global manufacturing and sales network. By focusing on operational efficiency and cost management, Audi aims to deliver stronger financial performance despite ongoing market uncertainties and the transition toward electric vehicles.