Audi, a subsidiary of Volkswagen, saw its vehicle deliveries decline by 8.2% to 367,139 units in the second quarter of 2026. This marks the third consecutive quarterly drop since Q2 2023, when the division delivered nearly 500,000 cars. The primary contributors to this downturn were weak performance in China and the United States, where the competitive market and shifting consumer behavior, including changes in tax policies and rising fuel prices, negatively impacted demand.
The challenges faced by Audi reflect broader issues within the Volkswagen Group, which reported an 8.6% decline in global sales to 2.08 million units in Q2 2026. While Western Europe and North America showed modest gains of 1.8% and 7.7% respectively, these were insufficient to offset a significant 36.6% collapse in Chinese deliveries for the group, totaling only 424,300 vehicles. Volkswagen has consequently lowered its full-year revenue outlook, though it still anticipates 6% to 8% growth.
Compared to its German competitors, Audi's performance lags, with Mercedes experiencing a 6% decline in Q2 deliveries to 511,962 vehicles and BMW reporting a nearly 5% reduction to 590,000 cars. Despite these struggles, Audi noted positive trends in order intake in Western Europe, which increased by 7% year-over-year, driven by strong demand for models like the Audi Q3 and Audi A6 E-tron. Volkswagen's premium sports car brand, Porsche, also struggled, with deliveries sliding 16% to 122,306 cars in the first half of the year, facing fierce local competition in China and the looming threat of US tariffs.
The current financial difficulties are compounded by internal tensions within Volkswagen. CEO Oliver Blume's ambitious restructuring plan, which aims to cut production capacity by 75% and reduce up to 100,000 jobs, has met resistance from the supervisory board and workers' councils. Concerns over potential plant closures and job cuts remain unaddressed, leading to an ultimatum from works council chief Daniela Cavallo and strong opposition from IG Metall chairwoman Christian, who accused the board of disrespecting workers.
