Recently, FAW-VW Audi held a mid-year performance communication meeting. In the fierce price competition market environment of the automotive industry this year, FAW-VW Audi announced in July that its cumulative sales had officially exceeded 9 million units.
This achievement is the result of FAW-VW Audi's efforts over the past 36 years, but the past does not equal the present. In the Audi Group's half-year financial report released not long ago, Audi brand's sales in China in the first half of 2024 were 320,400 units, down 1.9% year-on-year. Of which, the sales of the main sales force, FAW-VW Audi, were 301,600 units. Audi is facing the challenge of intensifying competition and shrinking high-end car market in China.
To cope with the internal competition, solidify the traditional oil car base
FAW-VW Audi's 30.16 million sales in the first half of the year were 4.9% lower than last year's 31.7 million, so FAW-VW Audi needs to first stabilize its base, especially the sales leader is still the A6L with an average monthly sales of over 14,000 units, and the domestic sales in the first seven months are nearly 100,000 units, helping to achieve a cumulative sales of nearly 350,000 units in the first seven months. Although FAW-VW Audi's sales have outperformed the luxury car market (down 5.6% year-on-year), this result was achieved by offering a 120,000 yuan discount on the A6L in some areas, and the "price war" of "price for volume" is obviously not a long-term solution. Meanwhile, Audi is facing this market environment and responding to global market competition by launching the "Audi Agenda" to expand and update its product lineup with more than 20 models, including electric, plug-in hybrid, and next-generation internal combustion engine power forms, by 2024.
Under this strategy, Audi has launched the new Audi A8 L Horch Founders Edition 60TFSI and the new Audi Q family's Q7, SQ7, and Q8 this year. Starting next year, FAW-VW Audi will gradually launch the all-new Audi A5L, Q5L, Q6L e-tron, and A6L e-tron, as well as import and introduce the entire Audi A5 Avant, S5, and S5 Avant lineup.
The Audi A5 is the next-generation gasoline car representative of the Audi A4, powered by a 2.0T+48V mild hybrid system, featuring a new design, and may be equipped with the Huawei intelligent driving system.
Looking to the future, oil and electricity are advancing together to enhance competitiveness.
According to data from the China Passenger Car Association, the sales of new energy vehicles reached 4.944 million units in the first half of this year, while the sales of gasoline vehicles reached 57.3 million units. Although new energy vehicles are already a major trend, the market for both oil and electric powered vehicles is still in a stage of parallel development.
Therefore, FAW-VW Audi is introducing a number of Audi gasoline and hybrid models based on the PPC platform to maintain its fuel-powered base, while introducing a number of Audi pure electric models based on the PPE platform to enhance its competitiveness in the electric vehicle market. One of the most important models that should be launched is the locally produced extended version of the Audi A6 e-tron, which officially debuted at the end of July and went on sale in the European market. It is expected that the extended wheelbase version will become the next generation of the A6L when it is launched in China. The Audi Group originally planned to have odd-numbered models as gasoline cars and even-numbered models as electric cars, but considering the nearly 40-year history of the A6 and A6L series, the A6L has become a brand symbol of FAW-VW. The next generation of gasoline-powered A6L in China will keep its name. At that time, the gasoline-powered A6L and the pure electric A6 e-tron will coexist in the Chinese market, meeting the different needs of Chinese consumers.
The debut of the Audi A6 e-tron was several years behind that of the Mercedes-Benz EQE and BMW THE i5, and users who have been dazzled by various new energy models now have more demanding requirements. At the same time, there are too many 5-meter-long, 3-meter-axle new energy sedans in the market, which has made the current influence of the Audi A6 e-tron not very strong.
How much will the A6 e-tron be priced in China, which is worth considering.
Balance is key, and price wars will be the new normal.
Audi says that the three-electric technology has greatly lowered the entry threshold of electric vehicles, and if there is capital support, new players may continue to emerge. Considering the extremely competitive domestic electric vehicle market today, price wars will still be the norm in the electric vehicle field. How will Audi regain its value as a luxury brand in the new energy market through its understanding of technology and deliver high-quality products, while also better controlling costs and finding the balance between cost and market price?
Audi says that traditional car manufacturers have traditionally used cost-based pricing, while dealers have used more market-based pricing methods. In the future in China, electric cars will have their own market, and gasoline cars will certainly have their own market. FAW-Volkswagen will work with its shareholders to launch more future-oriented, customer-oriented, and highly competitive electric products.
Let's see how the 20+ new models launched in the next two years will answer this question.