Electric vehicles lack competitiveness in China, and the CEO of Volkswagen acknowledges that Audi lags behind its competitor brands | Audi | electric vehicles
Volkswagen Group CEO Obom recently stated at Volkswagen Group's 2023 Capital Markets Day that the Audi brand is currently lagging behind its competitors, especially in the electric vehicle sector. Aobo Mu also stated that Audi's current lineup of models is facing an extremely awkward situation - not only lagging behind its competitors, but also falling behind its own capabilities.
Aobo Mu believes that Audi has not defended its leading position relative to its main competitors in recent years, and severe software issues have forced Audi to postpone its electric vehicle release plan. Volkswagen Group's business is highly dependent on China, but currently its pure electric vehicle product line is not competitive in the Chinese market.
The Chinese market is crucial for both the Volkswagen Group and the Audi brand. The Chinese market contributes one-third of Volkswagen Group and Audi's global sales. Before 2017, FAW Audi was at the forefront of the luxury car market in China, but over the past six years, it has been surpassed by BMW Brilliance and Beijing Mercedes Benz.
In the first quarter of 2023, BMW and Mercedes Benz sold 195000 and 191000 vehicles respectively in China, while Audi's sales in China during the same period were only 136000 vehicles, a year-on-year decrease of 16%. In the terminal retail market, Audi's price discount has long exceeded that of BMW and Mercedes Benz, which has led to a decline in the premium ability of the Audi brand.
In the past few years, Mercedes Benz, BMW, and Audi have all invested heavily in electric vehicles and launched multiple products. In contrast, BMW and Mercedes have achieved a certain sales scale through price reductions, while Audi's sales of electric vehicles remain dismal despite the same significant promotions. According to data from the China Association of Automobile Manufacturers, in the first five months of this year, BMW Brilliance, Beijing Benz, and FAW Audi sold 36607, 15930, and 7748 new energy vehicles respectively, with FAW Audi ranking last among the three German cars.
Aobo Mu plans to revive Audi's position in the Chinese market. In 2024, Audi will launch the pure electric SUV model Q6 e-tron, which is the brand's first model to adopt the Volkswagen Group PPE platform architecture and will be equipped with the long delayed version 1.2 software system. The new model based on the PPE luxury pure electric platform will be launched at the new factory in Changchun in 2024.
Audi plans to only launch pure electric vehicles in 2026 and gradually cease the production of internal combustion engine models by 2033. At that time, Audi's own production bases worldwide will be put into electric vehicle production. Audi China President Wen Zeyue stated at the Shanghai Auto Show in April this year that according to the plan, Audi will launch 20 models worldwide in the next three years, including 10 pure electric models.