Audi builds up compact product matrix by A3 China-made

Audi announced that the sales quantity accumulated to a total number of 20 million, and China-made models took 80%. Compared to 22 years cost before sales accumulated to the 1st million, it only took 9 months and 2 years of Audi to achieve its 2nd million, which is 3 months early than expectation.

Audi is proud of its “the entire supply chain localization” strategy. However, it faces imitation from opponents. In fact, BMW comes to China later than Audi, but it is pressing ahead its localization for a quick catch up.

According to statistics, the sales of Audi and BMW kept distance around 100 thousandat 2011 and 2012. The growth of Audi and BMW were both 37%. However, growth of BMW was up to 40%, but the figure of Audi was 29.6%. Meanwhile, China became the largest market of BMW at last year.

According to a recent report, 80 after generation become the mainstay of car consume. The total consume rise from 23% of 2007 to 43%, and overpass the after 70 generation. “We should take more effort to make our brand rejuvenation”. The General Manager of FAW-VW Audi sales department-- ShuwenGesaid.

According to National Passenger Car Information Joint Council，the total salesquantity of China-made Audi A4L and Q3 is 72,683 which takes 31.9% of the total 228 thousand sales in China; The figure of China-made BMW 3 series and X1 is 40,587, which takes 23.8% of its total sales 171 thousand; meanwhile, the figure of Mercedes Benz C classis 16,931 which take 17.1% of total 99 thousand. Analysis shows that Audi takes an early lead of entry-level car market, but it needs more competitive products to maintain the sustainable advantage.

“We gradually find that luxury brand carrejuvenationis not as young as our thought during moving forward.”ShuwenGe told our reporter. So-called “rejuvenation” is more reflect in the segment market,“such as the compactcar market of Audi A1 and A3, or the sport car segment market of Audi R8 super car”.

Actually, the intention of Benz and BMW working for compact car market is very obvious. BMW launches 1 series, X1 etc. to meet young customer’s taste. And BMW X1 takes the lead in China-made. Meanwhile, Benz publishes its new A-class this year, which has a lower price than Audi A3.

Compared with opponents, Audi chooses to dig deeply at the segment market. It is understand that Audi A3 three compartments, as a typical car of the segment market, shall be the fifth China-made model of Audi in China. It will launchmarket next year after go into operation at Foshan factory.

Distributor of Audi is optimistic about the future of A3 model. A distributor of south-west area of Audi so expressed during interview :“the target customer of Audi A3 is young people, they have high requirements of appearance and function of cars, and they are competitivesensitiveof price. Therefore, A3 will be more attractive to them after China-made”

The guidance price of imported A3 is ￥255 –￥328 thousand. Some perspectives point out that the price of A3 will low to B-class cars of some joint venture after China-made.

According to forecast of Audi, both China and USA will be the largest market for A3. Thus it can be see that the model is significantimportant for Audi development at China.