FAW-VW Audi to further expand product line as it risks losing stake in the government car market

Gasgoo.com (Shanghai March 8) - The Ministry of Industry and Information Technology's recent draft regarding government cars has caught the attention of several in the industry. The absence of any foreign vehicles on the list has many wondering how Audi, who has seen much success in the market for government cars, will respond. According to a report appearing on ynet.com, FAW-VW Audi Sales Division Executive Vice President Zhang Xiaojun confirmed that government car purchases account for 20 percent of Audi's total sales in China.

It is impossible to deny that government bodies have been a strong source of revenue for Audi since the brand's debut in China. However, Audi has a strong interest in making sure its products reach a larger consumer base. One of the methods the manufacturer plans to take is by increasing the number of Audi models available in the country, with its most recent release being that of the A5 (pictured above) last week.

According to Mr. Zhang, Audi wants to increase the speed of its localization by manufacturing more vehicles in China. He added that, however, "not all products can be made in the country, as domestic production requires several necessities." Mr. Zhang also emphasized the importance of imports in Audi's product range. "In order to satisfy consumer demand [and] for the sake of diversified brand line, imports are still a very important domain [for us]," he said.

Audi is also striving to make advances in the new energy vehicle market, with the Q5 Hybrid (pictured below) to make its Chinese debut later this year. A hybrid version of the new Audi A6L is also in the works.