Audi Plans to Expand on Smaller Cities in China to Drive Growth image

Audi expects sales in China to jump 11% by the end of this year, relying on the expansion in smaller cities and on rising incomes.

Audi CEO Rupert Stadler expects sales in China to reach 450,000 units, according to his statements made to reporters in the city of Foshan, where the German automaker builds its second Chinese plant. In 2012 Audi sold in China 405,838 units, an increase of 30% compared with 2011.

Audi is currently the leader in premium vehicle deliveries in China and a further expansion in the region will help parent VW reach its target of surpassing Toyota and GM, and become the largest automaker in the world by 2018. Sales in China during the first half of the year increased 18% to 228,139 units.

“A lot of entrepreneurs are coming into the market, the purchasing power is increasing, people are getting a little bit more rich,” Stadler said.

Audi has enjoyed increased sales demand coming from Beijing and Shanghai, but it missed the momentum in the south of the country where it will focus its expansion, opening dealerships in smaller cities. Relying on the new plant in Foshan and increasing capacity at the Changchun plant, Audi is confident it will reach sales of 700,000 units annually in the region in the following three to four years.

Source: Autonews