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Audi gearing up for sales above 100,000
By Gong Zhengzheng (China Daily)
Updated: 2005-11-24 06:31
Car maker Audi, the luxury arm of Volkswagen, aims to increase its annual
sales in China to more than 100,000 vehicles over the next three to four years,
despite mounting competition from rivals BMW and Mercedes, according to a top
executive of the company.
In an interview with China Daily, Ralph Weyler, an Audi board member
responsible for sales and marketing, said the company's global sales are
expected to reach 1 million vehicles by 2008 or 2009, with at least 100,000 of
those in China.
Audi's retail sales in China will grow slightly this year from last year,
Weyler predicted, without providing a specific number. Audi is expected to sell
820,000 vehicles globally this year.
In the first 10 months of this year, the firm sold 41,108 vehicles in China,
an increase of 1.2 per cent from a year earlier, he said.
The sales included 1,565 Audi A8s, 32,216 A6s and 7,327 A4s. The A8 is sold
in China as an import, while the other two models are made at Volkswagen's
venture with First Automotive Works Corp (FAW), the nation's top automaker.
Volkswagen, together with Audi, is the only major global auto maker that has
started to report sales to customers instead of dealers in China.
Audi has been China's luxury car market leader for many years, mainly due to
its early decision to build cars locally.
But Audi is now facing challenges from BMW and Mercedes-Benz, whose sales in
China are growing much faster than Audi's.
BMW, which started to make its 3 and 5 Series sedans in China in 2003 with
China Brilliance Auto, sold 16,999 vehicles during the first three quarters of
this year, up 36.4 per cent from a year ago.
Meanwhile, sales of Mercedes climbed by 22 per cent to 11,000 cars. Mercedes
will start to make the E and C-Class sedans next month at its parent
DaimlerChrysler's venture with Beijing Automotive Industry Corp.
Benjamin Asher, an analyst from Automotive Resources Asia Limited, the
consultancy with offices in Bangkok, Shanghai and Beijing, said: "Mercedes will
find many central and city government buyers in Beijing when they start
production. Mercedes is also known as the car to ride in and China's established
wealthy are still more inclined to ride than drive."
However, Weyler said Audi was not worried about losing market share to BMW
and Mercedes as China's luxury market is still expanding.
"It's not now possible for a single brand (Audi) to control 50 or 60 per cent
of the market. BMW and Mercedes will get some market share," he said.
Analysts do not believe Audi will be out-sold by BMW or Mercedes in China in
the near future, as its customer base, and its sales and service network, are
both larger.
Audi has more than 110 authorized dealers on the Chinese mainland, compared
with less than 60 for both BMW and Mercedes.
Weyler said Audi will launch the petrol-powered Q7, its first global sports
utility vehicle, in China as an import next June. The 4.2-litre Q7 and a concept
petrol-electric hybrid debuted in China during the on-going Third Guangzhou
International Motor Show.
(China Daily 11/24/2005 page10)
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