How Can Audi Return To The First Place? Balancing Audi And Electric Transformation Is The Key

"By 2023, Audi hopes to achieve an annual sales target of 1 million vehicles in China, the world's most important market." On February 25, in an interview with the 21st century economic reporter, Audi China president an Shihao once again emphasized Audi's new goals in China.

In 2020, Audi delivered a total of 726000 Audi brand cars in the Chinese mainland market, a year-on-year increase of 5.4%. This is the first time that Audi's annual sales volume in China has exceeded 700000 mark. To achieve the goal of one million, the compound annual growth rate needs to exceed 10% in the next few years.

Judging from Audi's sales growth in China in the past few years, this goal is not easy to achieve. But with the rapid growth of China's luxury car market, and with SAIC Audi introducing new models next year, the million target is not impossible to achieve.

It is worth noting that in recent years, in the competition with Mercedes Benz and BMW, Audi has gradually fallen into the inferior position. Audi, once the champion of China's high-end car market for 30 years, has fallen to the bottom of the top three German luxury cars.

While anshihao emphasizes the goal of one million, Audi's next "golden decade" in China is also a key word repeatedly mentioned. Therefore, Audi has formulated a new growth strategy with electrification as the core.

Behind all this is Audi's strategy to return to the first place in the high-end luxury car market segment in China, and it is also an important mission for anshihao to return to China and steer Audi China.

Balance north and South Audi

The landing of SAIC Audi is an important link for Audi, which wants to achieve its million goal. Judging from the current promotion process, SAIC Audi's products have been determined to be put into the market in 2022. In the next year, channel construction will enter a critical period.

"With the promotion of SAIC Audi project, Audi's market share in China will be further expanded." An Shihao is full of confidence in SAIC Audi project.

However, with two partners, Audi will not be able to win the championship again. At the same time, it will bring a series of new problems, such as resource allocation, channel competition and cooperation.

On the most important channel issue, the "one channel" scheme was not followed a few years ago. According to the latest plan issued by Audi on December 23 last year, SAIC Audi models will be sold and serviced through Audi's existing dealer investor network in the future.

Recently, a number of FAW Volkswagen Audi dealers told reporters of the 21st century economic report that the specific implementation plan is still under discussion. "There's no final conclusion yet. There's a lot of communication going on." On March 1, the senior management of a large dealer group told the reporter of the 21st century economic report.

"At present, FAW Group has its own sales system. We will also discuss what kind of sales system is most suitable for Audi in the future. For SAIC Group, a partner in the south, we are exploring the feasibility of the agency model. " Mr. an said.

Last year, FAW Volkswagen Audi division became a new independent sales company, namely FAW Audi sales Co., Ltd., and will be settled in Hangzhou.

According to an Shihao, FAW Audi sales company will be responsible for the sales of domestic cars and imported cars of FAW Audi, as well as electric vehicles based on PPE platform in the future.

According to the plan, SAIC Audi models will not be sold through existing channels in the future, but will be sold and serviced through Audi's existing dealer investor network.

"First, existing Audi investors can apply to join SAIC Audi related businesses. Second, we will soon launch a new exhibition hall concept." Mr. an said.

It is understood that within SAIC Volkswagen, a SAIC Audi team has been established to be responsible for the future network cooperation between SAIC Audi and existing investors, as well as the planning and development of exhibition halls. At the same time, this team will also cooperate with existing Audi 4S stores to discuss the future after-sales business of SAIC Audi products.

According to anshihao, this joint solution maximizes the synergy while reducing the complexity of the business.

However, in the existing FAW Volkswagen Audi dealers told reporters of the 21st century economic report that everything is in communication and there is no final conclusion.

"From a commercial point of view, if SAIC Audi cars can be directly sold in the existing exhibition halls in the future, it will certainly be the most advantageous for the dealers. If you want to build a new store for SAIC Audi, it doesn't seem necessary now. But from the point of view of SAIC Volkswagen, they certainly hope to have their own channels, which are obviously different from those of FAW Volkswagen Audi, so that they can do more and more. " Some dealers told reporters.

An Shihao stressed that what is more important for Audi consumers is that when he enters the Audi service outlets and Audi 4S stores, he will enjoy unified standard Audi service, regardless of whether he drives FAW Audi or SAIC Audi.

"The core appeal of dealers is actually only one, which is to sell more cars. No matter how the final solution is, I just hope that the sales volume will be better and better, and the profit will be higher and higher. " The dealers said.

Obviously, there is a competitive relationship between the north and the South Audi, the interests are not completely the same, the key is how to solve the problem. For the experienced anshihao, it is the key to deal with the channel problem and balance the interests of Audi in the north and the south, which is the key to achieve the sales target of 1 million in China.

Key period of electric transformation

For the new development stage in China in the future, Audi has formulated a new growth strategy: Audi's "golden decade". In this strategy, electrification transformation is an important part.

Electric vehicles will also be an important growth point for Audi in China in the future. By 2025, Audi is expected to launch more than 30 electric vehicles, of which about 25 will be pure electric vehicles, and the sales of electric vehicles will account for one third of the total sales.

Audi will accelerate the R & D and production of electric vehicles on the four platforms MEB, J1, PPE and MLB with the help of the collaborative advantages of Volkswagen Group.

"For Audi, electrification is a process of transformation. It is not achieved overnight, but gradually. Audi started its electric journey with e-tron. Now we have exhibited some electric milestone products such as Audi e-tron Sportback and Audi e-tron GT. We are going to move towards an electric future step by step. " Mr. an said.

In the second quarter of this year, the domestic Audi e-tron will be officially launched, the Audi e-tron Sportback will also be launched, and the Audi e-tron GT will enter the market this year.

Audi e-tron GT made its world debut on February 10 and made its debut in China on February 25. Audi RS e-tron GT is the new flagship model of Audi, which shows the forward-looking design of Audi. Audi also hopes to show high-performance gene in the field of electric vehicles.

It is understood that Audi e-tron GT is developed on the basis of the J1 platform and is positioned at a relatively high-end position. It will be produced at the nekasum production base in Germany, and there is no plan to make it in China.

Of course, for Audi's electric strategy in China, Audi FAW New Energy Automobile Co., Ltd. announced at the beginning of this year will play a crucial role.

On January 18, Audi, Volkswagen Group and FAW of China jointly announced that Audi FAW new energy joint venture will be established in Changchun. Audi and the Volkswagen Group will hold 60% of the company, the first time Audi has actual control of a company in China.

Audi FAW new energy joint venture will produce pure electric vehicles based on the PPE platform jointly developed by Audi and Porsche. The PPE platform products will be sold by FAW Audi sales company. Currently, Audi has no plan to set up a separate channel for electric vehicles.

In addition to electrification, Audi is also making every effort to promote the development of software, including digitization, intelligent interconnection, and automatic driving. It is understood that Audi is launching a new application, one app, which combines a series of functions. In addition, Audi will continue to provide solutions for household and public charging together with its partner "kemax".

"I am particularly confident in the development of high-end electric vehicles in the future." Anshihao predicts that by 2030, new energy vehicles will account for 40% - 45% of the luxury car market.

Of course, for Audi, the electric transformation is a great challenge, and it will also face a new market competition pattern.

Different from the high-end brand pattern of traditional fuel vehicles, at present, in China's high-end electric vehicle market, Tesla and other Chinese brands perform better than traditional luxury automobile brands.

In 2020, the sales volume of Mercedes Benz EQC, BMW ix3 or Audi e-tron in the Chinese market is not optimistic. In the high-end electric vehicle market, BBA does not seem to be the first choice for consumers.

However, the real competition in China's electric vehicle market is just beginning. According to an Shihao, Audi has three advantages, namely brand power, manufacturing technology and scale effect, to help it improve and progress in the field of electric vehicles.

However, Audi's electric strategy in China still needs to be speeded up, no matter compared with the new car manufacturing forces, or compared with BMW and Mercedes Benz, although they have great determination to transform. For example, Audi e-tron was released earlier than Mercedes Benz EQC and BMW ix3, but it was the latest to introduce it into China.

Of course, as anshihao said, Audi's electric strategy will be a gradual process. It is not impossible for Audi to catch up. The most important thing is that Audi and Volkswagen Group have the endorsement. Whether in the era of traditional fuel vehicles or electric vehicles, the scale effect of automobiles is very important.

In short, Audi wants to return to its peak in China on the premise that it must seize the opportunity of electric transformation.

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