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Business / Auto China

Audi looks to drive ahead in challenging Chinese market

By Gong Zhengzheng (China Daily) Updated: 2015-02-02 15:18

Audi looks to drive ahead in challenging Chinese market

Executives of Sino-German joint venture FAW Volkswagen and its Audi sales division pose at a new product launch ceremony in Beijing. [Photo provided to China Daily]

German brand feeling confident about growth prospects and position

German premium carmaker Audi AG vows to grow steadily and cement its position in China this year through a series of new vehicle releases, more dealership backing and improved customer experience, amid mounting market and policy challenges.

Ge Shuwen, executive deputy general manager of the Audi sales division at Sino-German joint venture FAW Volkswagen, said last week that the brand expected its 2015 sales in China to rise 10 to 15 percent from 2014.

"We have confidence that we can reinforce our leadership in China's premium car market. We will adjust the full-year target according to our quarterly performance," he said.

The brand's China sales grew by 17.7 percent to 575,077 cars in 2014 from the previous year, which maintained its two-decade-long position as the top premium car provider in the market.

The sales last year grabbed a third of not only China's premium car market but also Audi's global deliveries.

In the same year, Audi's rivals BMW and Mercedes-Benz moved 425,765 and 281,588 units respectively in China.

Zhang Pijie, general manager of FAW Volkswagen, acknowledged that the premium car market in China would be "full of challenges" this year.

"Pressures on the domestic economic downturn will persist…it is negative to the premium car market," Zhang said.

He said more cities planning to restrict car purchases and the upcoming new regulations of administration of automobile brand sales would also have an impact on the market.

So far, eight major Chinese cities, including Beijing, Guangzhou and Shenzhen, have restrictions on car purchases.

From the perspective of market competition, Zhang said some premium brands' price cuts for bigger sales volumes were unlikely to end in the near future and could further thin margins.

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