German carmaker Audi records drop in sales amid struggles in China

German car manufacturer Audi saw its global deliveries fall in the first quarter of the year, despite a strong performance from its electric vehicles.

Deliveries from January to March dropped 3.4% to 383,401 vehicles, attributed to a 7% crash in China, where the company faces intense local competition.

Audi delivered 48,599 vehicles to North America, representing a 2.1% drop that is likely to be exacerbated by 20% US tariffs on car imports that went into force last week.

The domestic market in Germany provided a more positive picture, with sales up 4.8% to 48,477, while deliveries in the rest of Europe were up 3%.

Europe - including Germany - accounted for almost three-quarters of Audi's sales of electric vehicles, which were up 30% to 46,371.

The company, based in the southern German city of Ingolstadt, is a subsidiary of the Volkswagen Group.

Audi is aiming to increase sales in 2025 after a difficult 2024. It announced plans in March to cut up to 7,500 jobs.