The subsidiary was established in the context of Group B rally, where homologation rules required manufacturers to produce road-going versions of their race cars. Audi used the quattro GmbH structure to engineer and produce the Audi Sport Quattro, known as the S1 in competition trim, with Audi AG handling the 200 street units required for homologation. In 1988, Audi Sport produced the Audi 200 Trans Am to raise brand awareness in the United States. When all-wheel drive was banned from that series the operation moved to IMSA, fielding the 700 hp Audi 90 IMSA GTO. The following year, quattro GmbH was contracted to develop a DTM car, resulting in the Audi V8 DTM based on the company's flagship sedan.
The RS designation, taken from the German RennSport (racing sport), marks Audi's highest performance trim level, positioned above the S specification and developed exclusively at Neckarsulm. Audi Sport creates RS models in collaboration with Audi AG, with typical development time running to approximately two years per vehicle. Professional racing drivers from DTM and the Le Mans endurance program participated in tuning, using both the Nurburgring and roads near Neckarsulm to refine the characteristic RS balance of neutral handling, low noise and vibration, and composed suspension.
The first RS model developed at Neckarsulm under the direction of Stephen Reil was the 2000-2001 B5 RS4 Avant quattro, following an earlier joint venture with Porsche on the RS2 Avant. Subsequent models from the facility include the 2003 C5 RS6 quattro and the 2006 B7 RS4 quattro. Current core products are the RS3, RS6, and RS7 Sportback. The degree of parts sharing between RS and standard Audi models varies: the B8.5 RS5, for instance, shares only the hood, roof, and doors with the A5.
Some RS models are manufactured outside Neckarsulm: the TT RS and RS3, though wholly designed at Neckarsulm, were built at Audi Hungaria Motor Kft's plant in Gyor, Hungary. Quattro GmbH-built cars are identifiable by VIN digits beginning with WUA, as opposed to WAU for standard AUDI AG production.
The mid-engined R8 two-seater sports car is exclusively designed, developed, and produced by Audi Sport GmbH. A former factory on the Neckarsulm site was redeveloped at a cost of 28 million euros to create the R8 production line, staffed by around 250 employees. The base V8 variant uses a longitudinally mounted 4.2-litre FSI engine shared from the B7 RS4 quattro but modified with a dry sump lubrication system, producing 309 kW and 430 Nm. The V10 variant uses a de-tuned version of the 5.2-litre FSI V10 from the Lamborghini Gallardo LP560-4, producing 386 kW and 530 Nm. A concept V12 TDI diesel version, later renamed the R8 TDI Le Mans, was also unveiled, using a 6.0-litre turbodiesel producing 368 kW and 1,000 Nm, technology shared with the Audi R15 TDI endurance racer.
The Audi exclusive program, first presented at the 1995 Frankfurt International Motor Show, allows customers to specify bespoke exterior colors, alloy wheels, leather grades, interior trims, wooden finishes, and colored seat belt webbing during the manufacturing process. The division also manages the S line trim specification, which provides exterior styling upgrades and is offered across much of the Audi range, though S line vehicles carry no performance increase over standard trims with the exception of certain Q7 variants. From 1985, the company also developed the Audi Accessories lifestyle range, selling approximately 1.2 million fashion and personal goods annually.
The Audi RS3 LMS TCR, introduced in 2016 for TCR regulations, is based on the RS3 road car. It uses the EA888 2.0-litre turbocharged engine producing 350 hp and 420 Nm in race configuration, weighing 1,245 kg. The first generation was available with either the standard S-tronic dual-clutch gearbox or a straight-cut sequential unit; the S-tronic was discontinued for the second generation due to weight penalties and maintenance complexity. The car was offered at approximately $110,000 USD.
The R8 LMS GT3 was Audi Sport's flagship customer GT3 product, producing 580 hp from the V10 shared almost identically with the road car. More than 50 percent of the R8 LMS's components are shared with the production vehicle. Race-specification R8s are assembled alongside the road cars at Neckarsulm and then transported to a dedicated facility five miles away for the fitment of motorsport-specific components such as roll cages and competition seats. The R8 V10 engine is nearly identical across road and race applications, allowing customers to race a full season and have the engine rebuilt at reasonable cost. The R8 LMS GT3 was discontinued in 2024, with Audi Sport pledging support through 2030; however, the number of active examples declined significantly in the early 2020s as Audi's shift toward electrification reduced logistical support quality. Despite this, an R8 LMS secured pole position at the 2025 Nurburgring 24 Hours. A third-generation R8 for GT3 racing, potentially featuring a high-revving 4.0-litre turbocharged V8, has been discussed but not confirmed as of 2025.
Audi Sport GmbH evolved from a specialist Group B homologation entity into one of the most significant high-performance car and customer racing operations in the German automotive industry. The division's distinctive approach — sharing genuine engineering DNA between road and race products, exemplified by the near-identical R8 V10 engine — became a defining element of the Audi Sport identity. The 2016 rebrand from quattro GmbH formalized a brand that had grown far beyond its all-wheel-drive origins.