Audi rides high after stellar year

Models such as the A6 and the A7 Sportback, above, were popular in China last year. Photo / Supplied

Demand for Audi's higher-priced models - and astonishing growth in China - ignited a 69 per cent jump in the German premium car manufacturer's after-tax profit last year.

Net profit jumped from €2.63 billion ($4.23 billion) to €4.44 billion, while after-tax revenues rose 24 per cent to €4.1 billion.

The result makes Audi one of the most profitable companies in the car industry - but there are some worrying clouds on the horizon this year and directors will only say they are planning for the 2012 result to be "on a par" with the record 2011 figure, reports automotive industry website goauto.

It is Europe that has them worried.

"There are imponderables in terms of the economic fundamentals in Europe," said chief financial officer Axel Strotbek.

"We can't make a forecast for the year as a whole because things change so quickly, so it would be wrong to make a concrete statement at this time of the year."

However, the numbers released this week showed many things went right for Audi last year.

The company released 12 new models as it renewed its range and expanded into new niches and that helped push its unit sales up by 19 per cent to a record 1.3 million vehicles.

Audi chairman Rupert Stadler said directors were confident the company would reach its stated target of more than 1.5 millions vehicles a year by 2015 earlier than anticipated.

But he warned there was no guarantee of sustained growth at recent rates.

"We all know that there is no such thing as a perpetual motion machine, something that will continue forever like this, but if you have certain basic targets and if you have a certain basic attitude, I think you are bound to be successful as a company."

Audi sales grew faster last year than the overall vehicle market and the company achieved record sales in 50 countries. In all of its 10 top markets, it grew by more than 10 per cent.

The jewel in the crown was China, which has become Audi's biggest market, eclipsing Germany. Sales in China went from representing 25 per cent of total turnover in 2010 to 38 per cent in 2011.

China bought 313,036 Audis last year - up 37 per cent - and the company has already started building a second plant with its joint venture partner FAW that will expand production in China to 700,000 units a year by 2015 - more than half the current production capacity.

And Stadler said Audi would be establishing a design and development centre in Beijing.

"Positive factors included the high popularity of the new A8 (up 72 per cent to 38,500), the new A6 and the new A7 Sportback," said Strotbek.