Audi Sells a Cool One Million Cars in China. Next Up: Another Million
Audi (VLKPY.PK) sold its one-millionth car in China this week, illustrating once again the appetite wealthy Chinese buyers have for German luxury brands in recent years.
Audi and parent Volkswagen are no newcomers to China, though. VW slowly built its presence there, starting back in 1988 with relatively tiny volumes and a long-term local partner in First Automobile Works, a Chinese automaker. The long-view strategy is paying off.
Audi is now selling cars in China at around 200,000 units per year, most of which are built locally. Out of the 1 million cars Audi has sold in China, only 50,000 were imported; the rest were assembled in China, the company said.
Rupert Stadler, chairman of the board of management of Audi, said in a written statement Audi was the first premium brand in China 22 years ago. He said it's been the leading luxury brand in China ever since.
Audi sells a lot more cars in China than in the United States. Through September, U.S. sales for Audi this year were 73,590, up about 24 percent from a year ago, according to AutoData.
That's a hefty percentage gain. However, the leading luxury brands in the U.S. market, BMW (BAMXY.PK), Lexus (TM) and Mercedes-Benz (DDAIF.PK), should all top 200,000 in U.S. sales this year.
BMW and Mercedes-Benz also have a growing presence in China, plus Porsche, Bentley and Rolls-Royce. Granted, those last two are British brands, but they belong to Volkswagen and BMW, respectively.
Audi isn't sitting still in China. The company plans to more than double its dealer network in China from 157 locations today to more than 400 by 2013. Dietmar Voggenreiter, president of Audi China, said in a written statement the Chinese joint venture partners expect to sell Audi's second 1 million cars in China within three years. That's fast, considering the first 1 million took 22 years.
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Photo: Audi