Audi Plans to Spur China Sales with Revamp
Published By : 27 Jul 2015 | Published By : QYRESEARCH
Audi, the German car maker hopes that redesigning of the top selling A4 will swell up its fortunes in China, the world’s largest auto market where the luxury brand is facing challenges of dwindling sales and change of leadership.
Following the move from Audi, the top carmakers in the world are under pressure to raise share in China, which is currently undergoing an anti-corruption movement, tumbling stocks, and a slow economic growth.
To keep with the move, Volkswagen will coax the Chinese buyers with an automobile which is lighter and offers more fuel efficiency than A4, which accounted for almost one-fifth of Audi’s sales of 1.8 million last year, as stated by product manager Audi, Jens Kotnik.
He further stated that the A4 was an important pillar of the global growth strategy of the company. The new launch will be a key model for the luxury carmaker, especially in the key markets of China, North America, and Europe.
The German carmaker based in Ingolstadt, aims to wrest the luxury car market from BMW by the finish of this decade, in a three-way competition which is also inclusive of Mercedes-Benz.
The brand new A4, which will be launched at the Frankfurt auto show this September and will be available in European markets in November, will contend with an upgraded version of the entry-level 3-Series from BMW, and a revamped Mercedes C-Class that hit the market last year.
After almost a decade of stable growth in China, Audi is experiencing headwinds where other luxury brands from Germany enjoy 30-50% of their total profits.
As per Volkswagen’s primary earning contributor, a target of 600,000 sales of the new automobile are estimated for 2015 in China. The volume growth observed sharp drop since December and declined 5.8% in June.
The German car maker which was due to announce its China sales last week with half-results, also announced it was replacing the regional top executive.