According to a report coming from sources that have knowledge of the automaker’s strategy, Audi AG, the second largest luxury automaker in the world, is delivering 1.2 billion yuan ($193 million) in financial aid to its Chinese dealers.
Two persons that have knowledge of the matter, but remained anonymous because the information has not been made public yet, told Bloomberg the support would be delivered in the near future to the sales network of the brand in China, where the automaker holds leadership position in the luxury sector. The carmaker recently dropped is deliver goal for the year from 600,000 autos to around last year’s figure – when it sold 578,932 units in China, including Hong Kong. “In an increasingly competitive market environment, Audi puts a strong focus on a financially healthy dealer network, guaranteed service quality and stable prices,” commented Audi China in a statement. “We steer the market in close alignment with our dealers.” The division refrained from confirming either the incentives or decision to lower the sales threshold for the year.
But the brand’s subsidies would be in line with those offered by its parent Volkswagen AG, who opted to support some of its Chinese dealers this month – the world’s largest auto market has seen a sensible demand slowdown alongside the lagging economy and stock market rout. Earlier this year, BMW and Toyota also made similar moves to help dealers shore up some of the losses made throughout the year. With demand slowing, dealers have been gathering ranks to seek lower sales targets and a bigger chunk of profits from global automakers, highly dependent on the Chinese market.