Audi’s dominance on the Chinese automotive is reported to have taken a dip. The market share for Audi in China has dropped by a reported 25% in just two years. In the first half of 2011, Audi shares on the Chinese market dropped 10% to just 30%. Those statistics will give company executives a very big worry indeed.

Audi had a head start of 15 years of entering the Chinese market. With Audi in China, their automotive industry grew. Audi were dominating the luxury automotive market in the country for a number of years. Mercedes-Benz and BMW have reportedly closed the gap in China recently, which is certain to worry Audi.

Studies and research claim that the young and rich are opting towards BMW and Mercedes-Benz cars rather than Audi. Has the reputation of Audi in China dipped? Are BMW and Mercedes-Benz producing quality alternatives? It would appear so as the next generations of Audi’s rival German luxury producer seem to be swaying customers away. The Chinese government has also been snapping up Audi vehicles for a number of years. Could this a reason why Audi’s reputation has fallen? Would young drivers want to own the vehicles as what the Government owns? It would appear not as an element of desire from younger drivers is naturally worn off. Driving an Audi may not carry a good image in many respects.

In 2010, Audi sold 227,000 cars in the China. BMW were fairly close by selling 168,998 cars and Mercedes-Benz sold 147,670.

BMW sales were up in the first half of the year when comparing sale increase figures to previous years within the same time period. The same can be said for Mercedes-Benz, with sales increasing by 22% in the first half of 2011. 2009 saw a figure of just 16% when comparing the same statistic.

Audi will be hoping to widen the gap once again. They hope to increase annual production figures to 1 million cars rather than the current 660,000 in China. BMW are hoping to increase their 41,000 mark of production to 300,000 beyond next year. Mercedes-Benz are hoping to extend their production figure to 300,000 by 2015.

We believe the story to one of the interesting reports in the automotive industry at the moment. We will keep you updated as to whether Audi can maintain their number one position in China.