German carmaker Audi increased sales and turnover last year, but made significantly less profit, the company announced on Tuesday during its annual press conference.
Profit after tax fell by 12% to just under €6.3 billion ($6.8 billion). This was mainly due to the effects of raw material hedging transactions, chief financial executive Jürgen Rittersberger said.
The outlook for the current year is bleak: Audi expects sales to fall from €69.9 billion to €63 to €68 billion, partly due to several model launches after two years without a new model.
"2024 will be an even more challenging year than 2023 - 2024 will be a year of transition for Audi," said Rittersberger. Competition will become tougher and discounts will have to be granted in some areas, he said. Investments will increase.
The model changeover and launch of the Audi Q6 e-tron, the A6 e-tron and the A5 will lead to higher costs and have a temporary negative impact on sales, he added. Audi is also experiencing supply problems with engines.
Chief executive Gernot Döllner is basically sticking to the dates for phasing out the combustion engine, but wants to keep a degree of flexibility open with regard to customer wishes.
The future of the car is electric, Audi will present its last new combustion model in 2026 and is aiming to phase out the combustion engine in 2033, Döllner said.
