Audi retains sales targets, sees market upturn

German premium carmaker Audi is holding on to its sales targets despite a slump in the market for premium cars because the situation will significantly improve in 2010 and 2011, its chief executive said.

"I do not see any reason why we shouldn't reach them (the targets). We are working towards 1.5 million units per year," Rupert Stadler told auto motor sport in an interview published on its website on Saturday.

The carmaker delivered 1 million vehicles to customers in 2008.

Audi, a unit of Germany's Volkswagen, has said it expects a sharp profit decline in 2009 and its first annual sales drop in 14 years as it grapples with a deepening crisis in global car markets.

"The total market is growing 20 percent, the premium market is losing 20 percent," Stadler said but argued that studies showed demands of premium customers were continuously increasing, even during a crisis.

"In the year 2010 or 2011 the situation will significantly improve. There will be growth in our sector again," Stadler said.

"In China we expect to see a market of 6 million cars in 2009. Half a year ago the outlook forecast just 5.1 million." he added.

Audi, which competes with Daimler and BMW, pins high hopes on its upcoming subcompact A1, due to be launched next year, betting consumers in urban areas will increasingly opt for smaller cars.

Stadler said he expects to see starting sales for the A1 of about 80,000 annually but that "there was a good chance that we can surpass those expectations".