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Audi sees little impact of policy favoring local rivals
By Shao Shijie |
March 22, 2012, Thursday
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Print Edition
Print Edition
AUDI, the largest luxury carmaker in China, downplayed the risks facing its growing momentum in the world's largest auto market after foreign brands were excluded from the government fleet purchases.
"FAW-VW Audi will always observe all the regulations by the government," said Dominique Boesch, president of Audi sales division at Volkswagen's venture in China. "Our strategy is to satisfy the needs of the customers in all different segments; that is to increase the product portfolio to offer products to a growing number of customers," he added.
Boesch's comment came after a preliminary list of the Ministry of Industry and Information Technology showed all the 412 models qualified for government vehicle procurement are Chinese brands. The move is believed as part of the government's intention to boost China's own automakers and may also limit foreign brands including Volkswagen and General Motors, which now take a dominant position in the estimated US$13 billion government-fleet segment.
Audi, which used to be popular in China with its A6 and A4 sedans for government use, has been adding sporty models over the past few years to reshape its brand image among individual buyers. Still, it derives about 20 percent of its sales from government purchases.
Boesch noted the auto company will actively increase its product offerings in China, in terms of both imported cars and locally produced models.
"Our extended product portfolio matches the growing individualization of Chinese customers," he told reporters.
Audi recently launched three models under the A5 family, which includes cabriolet, sportback and coupe, in China to compete with BMW's 3 series coupe and Mercedes-Benz's CLS in the rapidly growing premium compacts segment. It earlier said that Volkswagen's joint venture with China's FAW Group will soon start making Audi A3 compact sedan and a smaller-sized SUV Q3.
According to Boesch, energy-efficient models were another focus in its China strategy. The segment will include new products such as the new long-wheelbase A6 sedan with micro hybrid system and the imported Q5 hybrid. "By 2016, all the locally-produced models in China would be equipped with micro hybrid system," he said.
Boesch said he is carefully optimistic about China's premium car segment this year, given the growth potential in second- and third-tier cities. "But there are also negative factors such as big cities' measures to deal with traffic jam, inflation and higher fuel prices," he cautioned, declining to give a sales forecast.
Last year, Audi boosted China sales by 37 percent to over 300,000 units. The company has set a target to achieve sales of 1 million units in China during the 2011-2013 period to help lift its global competence.
"FAW-VW Audi will always observe all the regulations by the government," said Dominique Boesch, president of Audi sales division at Volkswagen's venture in China. "Our strategy is to satisfy the needs of the customers in all different segments; that is to increase the product portfolio to offer products to a growing number of customers," he added.
Boesch's comment came after a preliminary list of the Ministry of Industry and Information Technology showed all the 412 models qualified for government vehicle procurement are Chinese brands. The move is believed as part of the government's intention to boost China's own automakers and may also limit foreign brands including Volkswagen and General Motors, which now take a dominant position in the estimated US$13 billion government-fleet segment.
Audi, which used to be popular in China with its A6 and A4 sedans for government use, has been adding sporty models over the past few years to reshape its brand image among individual buyers. Still, it derives about 20 percent of its sales from government purchases.
Boesch noted the auto company will actively increase its product offerings in China, in terms of both imported cars and locally produced models.
"Our extended product portfolio matches the growing individualization of Chinese customers," he told reporters.
Audi recently launched three models under the A5 family, which includes cabriolet, sportback and coupe, in China to compete with BMW's 3 series coupe and Mercedes-Benz's CLS in the rapidly growing premium compacts segment. It earlier said that Volkswagen's joint venture with China's FAW Group will soon start making Audi A3 compact sedan and a smaller-sized SUV Q3.
According to Boesch, energy-efficient models were another focus in its China strategy. The segment will include new products such as the new long-wheelbase A6 sedan with micro hybrid system and the imported Q5 hybrid. "By 2016, all the locally-produced models in China would be equipped with micro hybrid system," he said.
Boesch said he is carefully optimistic about China's premium car segment this year, given the growth potential in second- and third-tier cities. "But there are also negative factors such as big cities' measures to deal with traffic jam, inflation and higher fuel prices," he cautioned, declining to give a sales forecast.
Last year, Audi boosted China sales by 37 percent to over 300,000 units. The company has set a target to achieve sales of 1 million units in China during the 2011-2013 period to help lift its global competence.
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