From 2023 to 2027, Audi Group will invest 66 percent of its outlays, or around Euros 28 billion in the future fields of electrification and digitalisation.
17 Mar 2023 | 8008 Views | By Shruti Mishra
The Volkswagen-owned Audi Group is targeting to invest two-thirds of its Euro 43 billion investment in battery electric vehicles (BEVs) and digitalisation by 2027, in continuation of its transformation into a sustainable connected premium mobility provider.
"From 2023 to 2027, the company will invest 66 percent of its outlays, ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
The Volkswagen-owned Audi Group is targeting to invest two-thirds of its Euro 43 billion investment in battery electric vehicles (BEVs) and digitalisation by 2027, in continuation of its transformation into a sustainable connected premium mobility provider.
"From 2023 to 2027, the company will invest 66 percent of its outlays, or around Euros 28 billion, in the future fields of electrification and digitalisation. Our focus on sustainable goals will shape our actions in the short, medium, and long term. The future investments from the current planning round confirm this clear path,” CEO Markus Duesmann said while addressing the brand's annual media conference.
He further stated that in the next five years, the company will be significantly expanding its electric portfolio. “We are on the verge of the biggest product initiative in our history. By 2025, we will have launched around 20 new models, more than 10 of which will be all-electric. We have set the course to go 100 percent electric. By 2027, we seek to offer an all-electric vehicle in each core segment,” Duesmann added.
He also confirmed that the brand will launch an entry-level electric car to sit below the Q4 e-tron SUV – and it will be here within the next 4-5 years. Moreover, Duesmann highlighted that the brand will launch a new architecture, PPC (premium platform combustion), for its last-generation combustion powertrain models.
Since the beginning of 2023, the brand has witnessed robust demand for electric mobility. In January and February 2023, sales of Audi's all-electric vehicles worldwide were up almost 40 percent compared to the same months last year. February also marked the launch of the Q8 e-tron in most European countries. "We have some 20,000 pre-orders on the books, confirming that demand for sustainable electric mobility is booming," Duesmann added.
Financial performance 2022
The group consisting of Audi, Bentley, Lamborghini, and Ducati, reported record revenues of Euro 61,753 million last year as compared to Euro 53,068 million in 2021. As per a company release, the 16.4 percent spike is particularly due to the strong price position and the one-off consolidation of the Bentley brand on January 1, 2022.
The fully electric Audi Q4 e-tron, Audi e-tron GT quattro1, and Audi e-tron models made a significant contribution to the increase, as did revenues from the Audi A3 and Audi Q5 model series, the company said.
“2022 was an impressive demonstration of just how robust and profitable our brand group of Audi, Bentley, Lamborghini, and Ducati really is. Our operating profit stood at a record Euro 7.6 billion. Operating return on sales reached a strong 12.2 percent. All this shows that we navigated the turbulent year of 2022 well and consistently made the most of opportunities. The same goes for our strong net cash flow, which hit the second-highest level in our company’s history,” Audi’s CFO Juergen Rittersberger said.
The Audi Group’s net cash flow came in at Euro 4,808 million in 2022, marking the second-highest figure in the company’s history.
Indian Market
Buoyed by a strong product portfolio, and a revival in customer sentiment, the luxury carmaker Audi reported a 27.14 percent rise in its retail sales in India to 4,187 units in 2022. The company sold 3,293 units in 2021.
The uptick in sales was driven by its three main launches: – Audi Q7, Audi A8 L, and Audi Q3. Besides, sedans A4 and A6, SUVs Q5, and Q8, and electric cars e-tron and e-tron Sportback remain volume sellers for the brand.
"India is a very strong market for us. We did over 4,000 deliveries, with a growth of 27 percent over last year. We are now also starting with Q3 shipping. This shows that we are keen to expand our range in India," Duesmann told Autocar Professional.
Outlook:
Keeping in view the supply situation and global economic performance, the group expects to see positive developments this year as well. According to the company, deliveries of brand group models to customers are expected to be between 1.8 and 1.9 million cars, while revenue is expected to reach a new record level of between Euro 69 billion and Euro 72 billion.
The operating margin is expected to be between 9 and 11 percent, assuming that car prices remain high. The Audi Group expects its net cash flow to be between Euro 4.5 billion and Euro 5.5 billion, which represents a continuation of its strong performance, the company added.