Audi Warns U.S. Sales Decline Could Get Even Worse in 2026

It’s been two dismal sales years for Audi in the United States, starting with a 14% drop in 2024 and an even larger 16% decline in 2025. Last year was Audi’s worst performance in the country this decade, with only 164,942 vehicles sold. Unfortunately, the decline looks likely to continue in 2026, with Audi projecting U.S. sales of around 144,000 cars this year. That estimate came to light in a document from a lawsuit, in which Luxury Autos of Smithtown had filed a complaint against the automaker. 

A Massive Three-Year Decline

In 2023, Audi sold a record 228,550 vehicles in the United States. If the 2026 projection is accurate, it would represent a 37% decline in sales in only three years. It would also make this year Audi’s worst one since 2012, when it sold 139,310 vehicles, according to the Automotive News Research & Data Center.

Asked to comment on the sales projection stated in the lawsuit document, an Audi spokesperson said the company would not comment on open litigation. The lawsuit was filed in December in the U.S. District Court for the Eastern District of New York. It claims that dealerships have been unfairly disadvantaged by Audi of America’s margin programs related to sales. The 2026 sales projection appeared in a related complaint on December 31.

Sales Of Most Audis Down

Last year, Audi of America saw a decline in sales across almost the entire lineup. Core SUV models like the Q3 (-27%), Q5 (-19%), and Q7 (-12%) all posted poorer numbers than in 2024. Only three models posted sales gains—the A7, Q6 e-tron, and Q8—but only the Q6 e-tron’s increase in sales was significant. The EV registered 17,207 sales in 2025, up from 966 in 2024.

These results are especially worrying when you consider that the brand launched several all-new models, including the third-generation Q5 in the popular compact crossover segment. The new A5 and A6 have not been around for long enough to gauge how popular they’ll be, but without strong SUV sales, Audi’s hopes of a turnaround anytime soon are slim.

Worse still for Audi is the fact that its closest rivals have not experienced the same sharp decline. BMW sales were up by 4.7% in the U.S. last year, setting a new record with 388,897 vehicles sold. Even without Mini sales, BMW is far ahead of Audi. Mercedes sits between the two, with sales of 343,200 last year, up by 1%.

What It Means

Audi’s declining sales involve multiple factors. Import tariffs have hit the brand hard, especially since it doesn’t manufacture vehicles in the U.S., whereas rivals like BMW and Lexus do. Audi has invested heavily in its EV lineup, but sales of nearly all those models are down, too. Fierce competition and a confusing naming strategy have hurt Audi as well.

The new Q3, a planned redesign of the Q7, and Audi’s first Q9 are expected to be important models in the brand’s portfolio. But, when even the new Q5 has failed to excite buyers, repeating the same formula with a smaller or larger vehicle may not be enough.

Audi needs a bigger reinvention of the brand, and the Concept C sports car could be the springboard to that. In design, ergonomics, and quality, it represents a new era for Audi, and these changes could also filter down to higher-volume vehicles in the company’s lineup.

Related: Audi Q9 Officially (and Quietly) Confirmed for 2026 Debut