The new U.S. tariffs are weighing heavily on Audi, the Volkswagen subsidiary.

The Ingolstadt-based automaker saw its global sales drop by 2.9 percent last year to just over 1.6 million vehicles, according to figures released Wednesday. Audi cited challenging geopolitical and economic conditions. "Not only an intense competitive environment in China, but also American tariff policies posed major challenges for the entire automotive industry and impacted international consumer behavior," the company stated. Even solid results in other parts of the world could not fully offset these influences, it added.

By the end of the year, deliveries had surpassed the previous year's level. In recent years, Audi had launched a series of new models that are only gradually reaching the market.

For the U.S. and Canada alone, the company reported a decline of 12.2 percent. The brand with the four rings is suffering from not having its own production facility in the United States and being entirely dependent on imports for its U.S. business. Its bestseller, the Q5 SUV, comes from a plant in Mexico. Other models are imported from Europe. Audi is aiming to establish its own production in the U.S. and is currently evaluating various options. Volkswagen Group CEO Oliver Blume recently tempered expectations: He said in an interview that a key factor for any decision would be substantial financial support from the American government, which has not been forthcoming so far.

In China, Audi sold five percent fewer vehicles. Western automakers in the People's Republic are under increasing pressure, particularly in the fast-growing electric vehicle market. Audi, together with its partner SAIC, aims to reinvigorate its business with a new brand. The first vehicles were delivered to customers in the fall.

Other German automakers also saw declines in 2025. Volkswagen's group-wide sales fell by 0.5 percent, Mercedes-Benz reported a nine percent drop in its core car business to 1.8 million vehicles, and BMW sold 1.4 percent fewer cars of its core brand.

(Reporting by Christina Amann, edited by Thomas Seythal)