Audi extends China push with brand's largest ever product initiatives

German luxury automobile brand Audi is consolidating its leading position in China's luxury market with its latest product initiatives ever and connectivity innovations.

"In the next five years, together with FAW, we will more than double our portfolio produced locally," said Rupert Stadler, CEO of Audi AG, at its brand event on Wednesday at the ongoing Auto China 2018 in Beijing.

Xu Liuping, chairman of FAW Group, said that in the future, FAW-VW Audi will exert its efforts in three areas: to focus more on Chinese customers to better meet their demands; to further strengthen the innovation capability in localized research and development to better fit into the ever-changing market; to keep pace with emerging trends and accelerate investment in electric cars, intelligent vehicles and mobility services.

The four-ring brand plans to roll out 16 new models in China this year, including the locally produced new generation Audi Q5L and Q2L. The models aim to tap into Chinese customer preferences in the world's largest auto market.

"The 16 new models for this year are mainly sport activity vehicles. Besides the Q5L and Q2L, the large size Q8 will also come to China in June for their premiere," said Marco Schubert, president of FAW Volkswagen Audi Sales Division.

At the event, Audi unveiled its China made all-new Audi Q5L mid- to large-size sport utility vehicle, just days ahead the Chinese venture's newest Changchun Audi Q factory begins production on the model, as well as the new Audi Q5s and derivative models on April 29.

The Audi Q factory has an annual capacity of 150,000 cars, and is expected to create more than 160 billion yuan ($25.4 billion) in industrial output and 30 billion yuan in revenue.

A total of 6.4 billion yuan has been invested into the Q factory by FAW-Volkswagen Audi, and the facility will be among the most advanced automobile factories in China, according to the company.

The further expansion in productivity in the country demonstrates the Ingolstadt-headquartered carmaker's commitment to development in China's luxury sector.

The FAW-Volkswagen Changchun Audi Q factory uses the most advanced technology and newest standards of Volkswagen with 400 robots in welding workshops and 110 automatic robots in painting workshops.

After the FAW-Volkswagen Changchun Audi Q factory comes into operation, it will be followed by the opening of the second phase of the Southern Base in Foshan, Qingdan Eastern Base and Tianjin Northern Base, forming a new strategic layout for FAW-Volkswagen.

FAW-Volkswagen Audi will also roll out an additional 10 Audi electric models in China by 2022, with electric sports utility vehicles among the new models.

Audi has been the leading premium brand for Chinese car buyers for three decades. The company said the models, both localized and imported, have won the trust from some 4.5 million customers.

The automaker recorded a benchmark setting 153,724 vehicles, both locally produced and imported, delivered in the country in the first quarter this year, with a year-on-year increase of 42.1 percent. Demand for Audi models again topped all other premium marques last year, with sales of 595,288 cars.

Thanks to the strong Chinese demand, Audi set a new record for global sales during the first quarter.

At the auto expo, the My Audi cellphone app went live to provide Chinese customers with individualized experiences in the new era. As the official app, My Audi features 10 services which allow users to remotely adjust settings on their Audi car, or monitor the vehicle for when it needs maintenance.

The German luxury automobile brand was one of the earliest to bring up the "intelligent" concept in the luxury large-size segment with its industry-leading digital technologies.

Audi's sophisticated human-machine interaction and active intelligence experiences for both driver and passengers are deployed to define a new era of intelligent mobility.

The company aims to bring tomorrow's technologies to today's reality with its flagship all-new Audi A8L that took center stage at the Audi pavilion at the auto show.

The latest model not only inherits the top qualities of its previous generations but also demonstrates Audi's future-oriented brand image and expresses its understanding of luxury.

The luxury sedan has lowered the entry barrier to a series of intelligent experiences for the driver and passengers such as all-wheel drive, electrification and human-machine interaction, providing users with "no-compromise" experiences worthy of the new era.

Audi is also restructuring its business to prepare itself for future mobility. In March, it signed a memorandum with FAW to establish a sales business and a company specializing in new mobility and digital services.

The carmaker said it expected the sales company to launch large product initiatives with faster decision-making processes. The new mobility company will enable Audi to respond to Chinese customer requests with even more agility and offer new digitization concepts.

Among other projects, the new mobility company will take over premium mobility service Audi on demand+, which was launched in Beijing in September last year, according to the carmaker.

haoyan@chinadaily.com.cn

Rupert Stadler (left), CEO of Audi AG, and Xu Liuping, chairman of FAW Group's Board of Directors attend an Audi brand event at Auto China 2018 in Beijing on Wednesday.  The all-new Audi Q5L is set to go into production this month at FAW-Volkswagen Audi's newest Changchun Audi Q factory in Jilin province. Photos provided to China Daily

(China Daily 04/26/2018 page13)