Audi Eyes 2M Annual Sales - Targets 1.7-1.8M in 2025 as U.S. Push Seeks to Double 200K Base Despite 27.5% Tariffs

Quietly, Audi is sharpening its ambitions. People familiar with the matter say the premium arm of Volkswagen (XETRA: VOWG) is weighing a long-term annual sales target of about 2 million cars - roughly 20% above 2024 volumes and a record for the marque.

That figure hasn't been formally announced and isn't tied to a specific calendar year, according to the source. Still, it signals a shift toward a more aggressive stance after a few rough years: sales slipped, model launches were bumpy and technology rollouts lagged behind some rivals. The problems have been a constant headache inside VW Group.

Under CEO Gernot Doellner, who took charge in 2023, Audi is reworking its strategy and could unveil the new plan later this year. Shorter-term, management is aiming for 1.7-1.8 million vehicle sales in 2025, up from 1.67 million in 2024 - the latter down about 11.8% year-on-year.

The big upside the people mention is the U.S. market. Audi currently sells roughly 200,000 cars a year in the U.S.; the new plan envisages a near doubling of that figure. That's easier said than done. Audi has no U.S. assembly plant today - which puts it behind rivals such as Mercedes-Benz (XETRA: MBGn) and BMW (XETRA: BMWG) who already run big local operations.

Tariffs complicate the U.S. push. Import duties of 27.5% have been painful, with Audi absorbing about €600 million in costs in the first half of the year, the source said. A decision on whether to build a U.S. plant - either an Audi-specific factory or using Volkswagen's existing footprint - may come this year. Management has discussed the idea of a U.S. plant that could also act as an export hub, mirroring the production footprints rivals use.

There's a possible regulatory tailwind: Brussels has started work on legislation that would pave the way for Washington to roll back EU auto tariffs to 15% retroactively from Aug. 1 - though the U.S. hasn't yet cut the rate.

Audi declined to comment. Currency reference: €1 = $1.17 (or $1 = €0.8542 as cited).

Numbers, strategy choices and tariff developments will be the things to watch as Audi plots a comeback. Is 2 million cars ambitious or overdue? That's now the question hanging over the brand and its parent, Volkswagen (XETRA: VOWG).