Audi AG, the luxury unit of German carmaker Volkswagen Group, believes that its China sales will continue to grow this year, although its global sales are expected to tumble due to the world financial crunch.
Rupert Stadler, chairman of Audi's management board, said in an interview that Audi will maintain its growth momentum in China, but its global sales are projected to decrease 10 percent.
Stadler didn't reveal how many vehicles Audi expects to sell in China this year.
The company sold more than 29,000 units in China in the first quarter, with sales in March alone hitting 11,848 vehicles, a monthly record since it started local production 20 years ago.
Stadler said the company aims to boost its sales in China to 200,000 units by 2015 when it expects to sell 1.5 million cars globally.
Audi's China sales jumped 17 percent to almost 120,000 vehicles last year, second only to its delivery in Germany. In 2008, it moved 250,000 units in its home market.
"If there's a market that could surpass Germany (as Audi's top market in the world) one day in the future, it will only be China," he said.
He said he believes there is "huge potential in China for growth" in high-end vehicle sales as the number of existing customers in the segment is still small. Luxury cars only account for 5 percent of China's entire passenger car market, much lower than 30 percent in Germany, according to Stadler.
"However, it will take time to build a bigger customer base," he added.
Mercedes-Benz, Audi's archrival, also expects the segment to grow strongly in China.
Dieter Zetsche, chairman of Mercedes-Benz, predicted that China's overall vehicle market will grow 6 percent this year, while the luxury segment will be double that.
China sales of the brand, owned by Daimler AG, surged by 30 percent to more than 11,000 units in the first quarter.
Stadler said Audi's success in China indicates the strong attractiveness of its brand and products to local customers.
The company will build a Q5 SUV at the end of this year in a new assembly plant at its joint venture with Volkswagen and China's FAW Corp, he said.
The venture in the northeastern city of Changchun is making Audi A6 and A4 sedans as well as a range of Volkswagen models. Audi's imported lineup in China includes the A8, Q7, A5, S8, S5, TT and R8.
Johannes Thammer, chief of Audi's sales unit in China, said the brand aims to obtain 42 to 43 percent of China's luxury car market. The figure now stands at 42 percent.
Thammer said Audi will expand its sales networks in second and third-tier cities in China to boost sales. The brand now has more than 120 authorized dealerships across the mainland.
Stadler said Audi expects China to contribute more to its global sourcing, such as for electric components.
During the Shanghai motor show, Audi displayed 13 vehicles with the all-new Q7 3.0 TDI making its global premiere.
(China Daily April 29, 2009)
