Audi sees China sales surpassing Germany by 2013

Audi AG will significantly exceed its sales target in China this year and expects the country to outpace its German home turf as its largest single market in 2012 or 2013 at the latest.

The projection underscores a broader geographic shift among auto makers toward Asian growth markets.

"Today we're at 118,000 car sales already. We're on track to significantly surpass our initial target in China this year" of selling 130,000 cars, said Peter Schwarzenbauer, Audi's executive board member responsible for sales and marketing, in an interview.
 
He said the Ingolstadt-based company will launch its A3 hatchback in China next year as part of a wider move to attract a broader customer base there, in addition to the new Q5 small sport-utility vehicle, which is being rolled out globally.

Audi ranks third in global luxury- car sales behind BMW AG and Daimler AG's Mercedes-Benz. But it keeps a firm grip on the top position in China, which it gained thanks partly to the early market entry of its parent company, Volkswagen AG.

Mr. Schwarzenbauer said annual sales in China might soar to 250,000 cars by 2012 or 2013 as Audi is preparing to launch several new or revamped models, ramping up local production and expanding its dealership network.

He said Audi also plans to establish a broader leasing and financing business in China to tap rising customer demand. Most Chinese buyers tend to pay cash for their vehicles.

China has proved to be one of the few bright spots for luxury-car makers after sales collapsed in other major geographies amid the economic downturn. Demand has been backed by a government stimulus package and tax break.

A move to halve the purchase tax on autos with 1.6-liter engines or less to 5% has fostered demand, particularly for smaller cars.

In the January-August period, passenger-vehicle sales in China rose 37% to 6.23 million, according to the China Association of Automobile Manufacturers, while total vehicle sales rose 29% on the year to 8.33 million.

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