Compact cars are the key to success for Audi in China image

According to the German automaker’s China president Dietmar Voggenreiter, Audi AG has seen an increase in its compact cars sales in China as the country’s middle class, which is rapidly growing, seems to be looking for more affordable luxury.

Not only Audi has registered increased sales in the smaller luxury cars department, but this has been a success for Volkswagen AG and other premium carmakers that are making their presence known in China, the world’s biggest car market.

Despite the economy scoring the lowest point in the past 25 years in terms of sales growth, foreign car manufacturers are still investing money into building auto factories in China.

Voggenreiter explained that Audi is meeting a growth in sales from the lower segments of Chinese consumers’ luxury spending, moving the shift from larger cars to smaller ones, making them into the “key growth drivers” on the Chinese market. At the Shanghai Auto Show on Monday, he stated “That means mid-class cars – for us, that’s the A4 and the Q5 – and compact segments cars will grow in the future very fast. These are the fastest growing segments.”

Voggenreiter added that the balance between smaller and larger cars is headed to more mature levels like the car markets in the U.S. where smaller cars represent around 65% of the auto market place. At the moment, larger premium sedans stand for 45% of sales in China, with smaller cars taking the other 55%. He also said that China’s luxury market has plenty of room to grow and move past the wide sector. Luxury sales in China represent about 9% of total car sales in comparison to 13-15% in the more mature markets.


By Gabriela Florea