The Audi Group has maintained its upward momentum in the first half of 2023, building upon a promising start to the year. In the first half of the year, the brand group achieved an impressive feat by delivering a grand total of 919,548 vehicles from renowned luxury car manufacturers Audi, Bentley, and Lamborghini. In a remarkable surge, there has been a staggering increase of over 15.3 percent when compared to the corresponding period of the previous year. In a remarkable display of growth, The Group reported a surge in deliveries, accompanied by a substantial increase in revenue. The company's revenue soared by an impressive 14.4 percent, reaching a staggering €34.2 billion. This surge in revenue translated into a commendable operating profit of €3.4 billion for The Group. Audi's fully electric models have achieved remarkable success, as evidenced by a staggering 50 percent surge in vehicle deliveries, reaching an impressive total of 75,647 units. This outstanding performance serves as a testament to Audi's commitment to its systematic electrification strategy, affirming that the Four Rings brand is firmly on the right path.
Audi's Chief Financial Officer, Jürgen Rittersberger, has expressed satisfaction with the company's robust financial performance in the initial half of the year. Rittersberger confidently states that Audi has successfully remained within the projected range for operating return on sales, indicating a positive outlook for the luxury car manufacturer. In the face of significant obstacles, the current situation lays a solid foundation for the forthcoming model offensive, encompassing an impressive lineup of over 20 new models, with more than ten of them set to be fully electric. In a groundbreaking move, the Audi Q6 e-tron series is set to spearhead a new era of electric mobility, originating from the prestigious city of Ingolstadt. This marks a significant milestone for Audi as they venture into the realm of e-mobility for the very first time.
Deliveries: Audi brand celebrates its best June of all time
In an impressive display of automotive prowess, the brand group has reported a staggering delivery of 919,548 vehicles in the first half of 2023. In a remarkable surge, the number of vehicles in the current-year period has witnessed a substantial rise of 15.3 percent, when compared to the figures from the corresponding period of the previous year, which stood at 797,587 vehicles. In a remarkable display of growth, the Audi brand has reported a substantial surge in deliveries, with a staggering 907,111 vehicles sold in the first half of 2023. This impressive figure represents a remarkable 16 percent increase compared to the same period in the previous year, solidifying Audi's continued trajectory of success. Audi, the renowned automobile manufacturer, has reached a remarkable milestone in the month of June. The company has achieved its highest number of customer deliveries ever recorded, with an impressive total of 182,075 vehicles sold. This outstanding achievement further solidifies Audi's position as a leader in the automotive industry.
Audi, the renowned automotive brand, is steadfastly forging ahead on its trajectory of expansion in the realm of electric vehicles. In the initial six months of 2023, an impressive number of 75,647 fully electric models were delivered by the company, marking a significant increase from the previous year's figure of 50,033 units. The Audi Q4 e-tron emerged as the leading contributor to this remarkable feat, exhibiting a remarkable growth rate of 163.7 percent. The growth rate stands at an impressive 51.2 percent, indicating significant progress. The brand group's deliveries saw a notable increase, resulting in a rise of electric vehicles' share to 8.2 percent.
Audi's performance in the Middle East market has been nothing short of exceptional, as the luxury carmaker experienced a remarkable 26% growth in the first half of 2023. This surge in sales marks a significant milestone for Audi, as it represents the strongest half-year results the company has achieved since 2015. The brand's overall global success has been significantly bolstered by this contribution. The remarkable growth serves as a testament to the Middle East's significance as a flourishing region within Audi's ambitious expansion strategy.
Audi's performance in specific segments within the region has been nothing short of exceptional. In a remarkable display of performance, the A, B, and C segment sedans have achieved an impressive year-on-year increase of 62%. In a remarkable display of its soaring popularity, the Audi Q5 has witnessed a staggering surge of nearly three-digit percentage when compared to the corresponding period of the previous year. In a remarkable development, the e-tron GT has been steadily gaining traction in our electrification line-up, showcasing an impressive surge of 27% when compared to the previous year.
Audi's remarkable expansion and sales surge in the Middle East is a testament to the escalating appetite for opulent automobiles in the region. This trend is particularly evident in the mounting fascination with fully electric models. Audi's recent achievement in the Middle East has solidified its position as a prominent provider of premium mobility, further strengthening its positive trajectory on the global stage.
Hildegard Wortmann “Strong growth in all sales regions”
In a recent statement, Hildegard Wortmann, a prominent figure as a member of the Board of Management for Sales and Marketing, provided a comprehensive overview of the current business landscape. With a positive tone, Wortmann highlights the impressive performance witnessed during the initial months of 2023. As the first half of the year draws to a close, it is evident that substantial growth has been achieved across all significant sales regions. In a remarkable display of teamwork and operational prowess, our organization has achieved a significant milestone. The diligent efforts of our dedicated team have resulted in a remarkable surge in deliveries to esteemed Audi customers. In the first half of 2023, we have witnessed a commendable growth of approximately 16 percent in our delivery figures. This accomplishment stands as a testament to our unwavering commitment to excellence and customer satisfaction. The remarkable surge of over 50 percent in sales for our fully electric models serves as a testament to our triumphant journey towards establishing ourselves as a leading purveyor of environmentally conscious luxury transportation.
Strong financial performance in the first half of the year
The brand group has reported robust revenue growth in the first half of 2023, buoyed by impressive delivery figures. In a remarkable display of financial growth, revenue surged by an impressive 14.4 percent, reaching a staggering €34,169 million (compared to €29,869 million in the first half of 2022). The share of revenue aligned with the EU taxonomy has once again experienced an increase, reaching a notable 14.9 percent. This marks a significant rise from the previous period's figure of 12.3 percent in H1 2022. In a recent statement, CFO Jürgen Rittersberger expressed his satisfaction with the company's performance in the first half of the year. He highlighted the significant growth in green revenue, which serves as a testament to the successful execution of their environmental, social, and governance (ESG) strategy. This achievement underscores the company's commitment to sustainability and its ongoing efforts to align with global ESG standards.
Forecast for 2023 largely confirmed
In its forecast for the year 2023, the Audi Group remains confident in its projected vehicle deliveries, anticipating a range of 1.8 to 1.9 million units. Additionally, the company expects to generate revenue within the €69 to €72 billion range. These figures reflect the company's optimistic outlook for the upcoming year. According to projections, the operating return on sales is anticipated to maintain a steady range of 9 to 11 percent. According to the latest projections, the Audi Group anticipates that its net cash flow will likely fall towards the lower end of the estimated range, which spans from €4.5 billion to €5.5 billion.
Due to increased investments in cutting-edge technologies, the research and development cost ratio is projected to surpass the previously established range of 6 to 7 percent.
Ambitious program to improve competitiveness
In a bold vision for the future, the Audi Group has set its sights on achieving an impressive annual return on sales of approximately 14 percent by the year 2030. This ambitious target reflects the company's unwavering commitment to financial success and underscores its determination to thrive in the ever-evolving automotive landscape. With this strategic objective in place, Audi is poised to navigate the challenges and seize the opportunities that lie ahead, solidifying its position as a formidable player in the industry. In pursuit of its objective, Audi has embarked on a bold and ambitious performance program. The primary objective centers around enhancing product profitability, with a particular emphasis on electric vehicles. In addition to other measures, the company has implemented a robust revenue strategy, focusing on price enforcement, after-sales services, and the adoption of innovative business models.