By Markus Klausen 
 

Audi could increase its operating margin more than previously planned as electric-vehicle production ramps up, Audi Chief Executive Markus Duesmann said Friday.

The German car maker, which is a subsidiary of Volkswagen, currently has a 9% to 11% target for its operating margin in 2021, but Mr. Duesmann said he thinks "an increase beyond our target is conceivable."

However, given the company's large investments in e-mobility, reaching the current 11% figure remains "demanding", he added.

Audi's operating margin was 10.7% in the first half of this year, thanks to strong sales figures, rebounding from 5.5% in 2020 due to the effects of the pandemic.

Declining battery costs will be decisive in increasing margins, the CEO said.

Audi on Thursday said that in three years it could achieve higher returns with electric models than with combustion engines, adding it will only launch new models that are equipped with electric-drive systems from 2026.

 

Write to unternehmen.de@dowjones.com

 

(END) Dow Jones Newswires

August 27, 2021 07:37 ET (11:37 GMT)

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