Top Biz News

Audi again aiming high

By Han Tianyang (China Daily)
Updated: 2010-03-15 13:11

The FAW Volkswagen joint venture builds the popular Audi A4L and A6L sedans as well as the new Q5 SUV. Ren Weihong / For China Daily

INGOLSTADT, GERMANY - Audi AG, the luxury arm of Germany's Volkswagen Group, plans to again lead the sector in China with sales of 200,000 units in 2010 after moving nearly 160,000 cars last year in its largest overseas market.

"In the 21 years since we commenced operations in China, 2009 was the most successful," Rupert Stadler, chairman of Audi's management board, said at the company's annual press conference last week.

Audi's record-setting sales can be partly attributed to overall industry growth in China, which replaced the US as the world's largest auto market last year.

Yet growth last year was so rapid the market even outpaced Audi's surge, resulting in a fall in market share from 41.6 percent to 40.1 percent for the luxury icon, said Stadler.

The slight decrease does not bother the chairman. When asked what his bottom line is for Audi's share in China, Stadler laughed.

"I've never thought about this - all we think of is moving forward to achieve higher goals."

While Audi had robust growth in China, its global sales last year declined by 5.4 percent to some 950,000 units.

With the global economy on track to recovery, Rupert said he is convinced Audi will once again exceed the 1 million mark in sales this year, a record high it hit in 2008.

More dealerships

Stadler also unveiled Audi's plan to develop 60 more dealers in China in the next two years.

"With the establishment of 60 new dealers, a large number of new staff will join Audi - how to make them understand the brand and consumer services will be our main challenge," he said.

"We don't want too fast growth that could bring risks, he added. "Together with our partners, we want to satisfy and delight our customers."

The company now has 160 dealerships in 95 cities across the country.

Stadler also announced that Audi will bring new models to China this year, "especially products that are rich in emotion and passion".

He pins high hopes on Audi's Q5 luxury compact sports utility vehicle, which he believes will strongly support the company's 2010 sales in China as well as enrich the brand.

Production on the locally made Q5 began in Changchun at the FAW Volkswagen joint venture at the end of last year. It is expected to hit the market soon.

Audi now has two plants in the northeastern city of Changchun with a combined production capacity of 200,000 units, where the joint venture builds the A4L and A6L sedans as well as the Q5 SUV. One of the factories opened just six months ago to meet rapidly increasing demand in China.

The company also imports the A5, A8, Q7, TT and R8 to China, which together comprised nearly 10 percent of Audi's sales in the nation last year.

Lamborghini

Another Audi unit, Italian supercar maker Lamborghini, views China as one of its principle markets, although the country ranked No 9 in sales last year.

"We expect China to surpass Italy as the company's second-largest market in two or three years," said Stephan Winkelmann, CEO of Lamborghini.

The United States, where 353 Lamborghinis were sold last year, is the company's top market.

Lamborghini's worldwide sales dropped to 1,500-odd cars last year from more than 2,000 units in 2008. Yet China remained a bright spot, with sales increasing to 80 units from 70 in 2008.

Winkelmann said he expects to sell 100 Lamborghinis in China this year, adding that in January and February they already moved 20.

The company now offers two models in China, with prices ranging from just under 3 million yuan to 7.3 million yuan.

Lamborghini's Gallardo model contributed 70 percent of the carmaker's China sales last year, while the rest were the more expensive Murcielago, said Winkelmann.

The CEO also plans to bring his extreme supercars to the Beijing Auto Show next month in a bid to further tap the Chinese car market.