Audi originated in Germany in 1909 when August Horch founded the Horch Cie. Motorwagenwerke AG in Zwickau. The first vehicle created by Horch was the Audi Type A 10/22 hp Sport-Phaeton, a sporty four-seater. Horch went through the experience of a business dispute with founder August Horch in 1909. Horch left the company and in 1910 founded a second car manufacturing firm of the same name in Zwickau, Germany. The first cars of the new company were branded Audi, which was derived from Horch's surname.

Audi enjoyed success through the 20th century, with the introduction of new models such as the Audi 80 in 1972, the Audi Quattro in 1980, and the Audi A4 in 1994. The company continued to invest in new models, including the Audi A3 in 1996, TT coupe and roadster in 1998, A2 in 2000, and the A8 in 2004. By 2008, Audi had established itself as one of the world's leading luxury car makers. 

In recent years, Audi has launched a number of advanced technologies including Audi Active Lane Assist, a lane-keeping assist system, and the Audi MMI operating system, which is used to control nearly all vehicle functions. 

Audi has also been at the forefront of developing electric vehicles and alternative powertrain technologies, such as its acclaimed e-tron quattro, an all-electric SUV.