Despite a turbulent quarter for European automakers, luxury marques Bentley and Lamborghini, both nestled within Volkswagen Group’s Audi division, have emerged as the financial backbone of the group. While Bentley struggles with profitability pressures and Lamborghini navigates brand positioning challenges, both continue to punch well above their weight in delivering returns to the parent company.
Bentley: Profitability Slips, But Core Markets Stay Solid
Bentley’s Q1 2025 figures revealed an uneven landscape. The brand produced 2,449 vehicles, a 15.5% decline year-on-year, and delivered 2,388 units, down 4.7%. Revenue fell slightly to €661 million (-4.0%), but the steepest drop was seen in operating profit, which plunged by 41% to €71 million.
This decline is largely attributed to the sharp fall in Bentayga SUV sales, which tumbled 23.4%. While the new Continental GT saw a strong 49.2% increase in deliveries, its lower profitability compared to the Bentayga appears to have dented overall margins. The Flying Spur also saw deliveries halve, although current production levels suggest a healthy order pipeline.
Hybrids made up 62% of Bentley’s production, a notable shift that, while aligned with future-facing strategy, may be weighing on profit margins due to higher component costs and system complexity. Notably, Bentley’s long-anticipated first EV has been delayed to 2027, raising concerns about further slippage amid a volatile luxury EV market.
Regionally, China/HK sales plummeted by 25%, slicing 5% off its global sales share. However, growth in the US (+3%) and Europe (+4%) helped offset the impact. The brand’s challenge moving forward will be to accelerate growth in these stable regions and push an urgently needed Bentayga refresh to recover profitability.
Lamborghini: Record-Breaking Profitability, But SUVs Dominate
In contrast, Lamborghini had a blockbuster first quarter. Deliveries rose 12.8% to 2,967 units despite a 24.4% production drop, with revenues soaring to €895 million (+29.6%) and operating profit climbing to €248 million (+33.0%).
Leading the charge was the Urus SUV, accounting for 70% of deliveries and posting a 39.9% surge in sales. The recently launched Revuelto contributed 442 units, marking a massive 489% increase, while the outgoing Huracan—now being replaced by the upcoming Temerario—continued its phased exit with 437 units (-58.7%).
Hybrid powertrains represented 73% of Lamborghini’s production, highlighting its rapid transition away from pure ICE models. However, the brand’s overwhelming reliance on the Urus—a family SUV—raises strategic concerns. With more Urus units now on the US used-car market than competing models like the Aston Martin DBX, the risk of brand dilution is growing.
Still, Lamborghini’s global footprint remains diverse and relatively insulated from China’s downturn, with only 2% of its Q1 sales coming from the region. With the launch of the Temerario on the horizon, the brand aims to rebalance its portfolio toward high-performance supercars.
The Bigger Picture: Two Brands, One Strategic Pillar
Together, Bentley and Lamborghini sold just over 1% of the Audi Group’s vehicles in Q1 2025, but generated a staggering 60% of its operating profit. Lamborghini alone accounted for nearly half of the group’s profit—a remarkable feat for a niche performance brand.
For Volkswagen AG, which continues to grapple with stagnation in China and sluggish volumes in traditional European markets, the performance of Bentley and Lamborghini underscores the growing importance of the ultra-luxury segment. As volume brands stumble, it’s these high-margin players that are keeping the group’s financial engine running.
Conclusion
While Bentley’s volumes outside China show resilience, its profitability hinges on reviving the Bentayga and cautiously navigating its hybrid transition. Lamborghini, meanwhile, enjoys a financial high but must ensure that its SUV-led success doesn’t compromise its supercar soul. Together, these two brands are not just surviving a challenging market—they’re sustaining the Volkswagen Group’s global ambitions.
