Recently, FAW Audi held its 2024 mid-year performance communication meeting. In a fiercely competitive market, FAW Audi announced its cumulative sales surpassed 9 million units in July. This achievement reflects 36 years of effort. However, past success does not guarantee the present. The Audi Group’s recent half-year report shows that Audi’s sales in China reached 320,400 units in the first half of 2024, a 1.9% decline year-on-year. FAW Audi sold 301,600 units. Audi faces intensified competition and a shrinking high-end car market in China. To address these challenges, FAW Audi aims to stabilize its traditional gasoline vehicle base.
FAW Audi’s sales in the first half of the year reached 301,600 units, down 4.9% from 317,000 units last year. FAW Audi needs to stabilize its base. The Audi A6L leads sales, averaging over 14,000 units per month. From January to July, it sold nearly 100,000 units domestically, helping achieve a total of almost 350,000 units. Although FAW Audi outperformed the luxury car market, this success came after a price cut of 120,000 yuan (16820$) in some regions for the A6L. Relying on price cuts for volume is not sustainable. In response to the market environment and global competition, Audi launched the “Audi Future Plan.” This plan will introduce over 20 models in 2024, including electric vehicles, plug-in hybrids, and new internal combustion engines. Under this strategy, Audi has launched the new Audi A8L Horch Founder Edition 60TFSI and the new Q family models: Q7, SQ7, and Q8. Starting next year, FAW Audi will roll out the all-new Audi A5L, Q5L, Q6L e-tron, and A6L e-tron. It will also import models like the Audi A5 Avant, S5, and S5 Avant. The Audi A5 represents the next generation of the A4 fuel vehicle. It features a 2.0T engine with a 48V mild hybrid system and a new design. It may also include Huawei’s intelligent driving system. Looking ahead, FAW Audi aims to enhance competitiveness with both fuel and electric power. According to the China Passenger Car Association, new energy vehicle sales reached 4.944 million in the first half of this year, while fuel vehicle sales hit 5.73 million. Although new energy vehicles are trending, the market for both fuel and electric vehicles is still developing in parallel. To maintain its fuel vehicle base, FAW Audi will introduce several fuel and hybrid models based on the PPC platform. It will also launch multiple pure electric models based on the PPE platform to boost its competitiveness in the electric vehicle market.
The most important model is the domestic long-wheelbase Audi A6 e-tron. This model debuted at the end of July and began pre-sales in Europe. After production, it will become the next generation A6L. Audi Group originally planned odd-numbered models as fuel vehicles and even-numbered models as electric vehicles. However, considering the nearly 40-year history of the A6 and A6L series, the A6L has become a brand symbol for FAW Audi. The next generation fuel A6L will keep its name. Both the fuel A6L and the pure electric A6 e-tron long-wheelbase A6L will coexist, meeting the diverse needs of Chinese consumers.
Mastering Balance: Price Wars Will Be the New Normal Audi states that battery technology significantly lowers the entry barrier for electric models. With capital support, new players may emerge continuously. Given the intense competition in the domestic electric vehicle market, price wars will remain common. Audi aims to understand technology to enhance its products in the new energy market. It wants to prove its value as a luxury brand while controlling costs. The goal is to find a balance between costs and market prices. Traditionally, manufacturers set prices based on costs, while dealers used market pricing. In the future, electric vehicles will have their own market in China, and gasoline vehicles will have theirs. FAW Audi will collaborate with shareholders to launch more competitive electric products that meet user demands. Let more than 20 new models in the next two years show us the results.