By Dominic Chopping

Audi reported a 2.9% drop in full-year car deliveries as the automaker echoed recent comments from German peers that competition in China and U.S. tariffs hit demand.

The brand--part of Volkswagen group--said Wednesday that deliveries fell to 1.62 million vehicles in 2025, led by a 5.0% decline in China and a 12.2% drop in North America.

Deliveries totaled 617,514 vehicles in China, down from 649,900 in 2024. In North America, deliveries fell to 202,143 from 230,220.

The figures come after BMW, Mercedes-Benz and Volkswagen have all reported sales figures in recent days that highlighted the challenging Chinese market and demand hit from U.S. tariffs.

"Geopolitical and economic challenges continued to pressure delivery figures in 2025," Audi said.

"An intense competitive environment in China and U.S. tariff policy affected the entire automotive sector and shaped global consumer behavior."

Solid performances in Europe, Germany, as well as overseas and emerging markets couldn't fully offset these factors, it added.

Deliveries in Europe, excluding Germany, slipped 0.5%, while deliveries in Germany rose 4.0%.

Audi has been focusing on rapidly expanding its portfolio of electric vehicles and strengthening its setup in China with market-specific models, production and local partners. It said Wednesday that its model initiative for the Chinese market will continue at a rapid pace in 2026, with key models including the Audi A6L, the Audi A6L e-tron, the Audi Q5L and AUDI E7X set to launch.

Despite the drop in overall deliveries for the year, Audi said it registered an increase on year in every month starting in September, signaling an upward trend.

"The order books support the trend," it said. Orders increased over 13% in 2025 compared with the previous year, as orders for electric models jumped around 58%.

Audi deliveries of all-electric models rose 36% to a record of over 223,000 vehicles in 2025, driven by demand for its A6 e-tron and Q6 e-tron.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

January 14, 2026 04:28 ET (09:28 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.