Audi is planning to sell 1 million cars over 3 years in China. The countries current largest luxury car supplier appears not be worried at a potential slowdown with the world’s largest automotive market.
They will have to fend off their German counterparts, BMW and Mercedes-Benz. Both of which have performed very well in China this year, despite Mercedes-Benz experiencing a slowdown in sales earlier this year. Some have been surprised at the high sales of expensive luxury cars as the overall Chinese automotive markets experienced an overall downfall towards the end of the year.
Audi sold 30,000 cars in China last month alone (Sales figures include units sold in Hong Kong). January to November sales equate to 283,600. That represents a year on year improvement of 35.2 per cent. BMW and Mercedes-Benz also experienced a growth in January to November sales of 40.7 per cent and 35 per cent respectively.
A slowing economy
This year represents an unfortunate on the whole poor performance for the Chinese automotive market. Back in 2009, sales rose to 53 per cent and 33 per cent in 2010 from January to November. This year saw a jump of just 5.3 per cent from January to November. It may come as no surprise as local authorities have been forced to push cars off the road due to the notorious congestion within the country. Tax incentives for purchasing small cars have also stopped in China.
Everything on track
Dietmar Voggenreiter, Audi’s President for the companies Chinese operations stated clearly that everything is in place for 1 million sales target to be achieved. He said “This is the first year of the three-year period where we’d like to reach this target to sell 1 million, we started already with a new sales record. So we are well on track to achieve 1 million in three years,’ he told Reuters in an interview.”
Although the luxury car market is not experiencing sales like that of America and Europe, Mr Voggenreiter expects sales to increase by 8 to 10 per cent next year.
Audi’s Chinese market is so big that it has now replaced Germany as the company’s largest market. They plan to build a new factory in the country next year and take production capacity levels to 700,000.