Currently, Audi is the largest seller of luxury cars in China and is confident the market will grow after showing signs of recovery. A growing middle-class in China will help ensure that its car market continues to grow long term. Car deliveries increased .6 percent for August, which is actually good news, considering the recent stock market rout which cause a 17-month low for the Chinese market in July. So things are looking up.
“There was a bit of light at the end of the tunnel in August,” Stadler said on Tuesday. “But one swallow doesn’t make a summer. That’s why my forecast will remain cautious.”
Audi has been pushing discounts and incentives towards Chinese market buyers to bring customers into showrooms. The more customers that buy, the more incentives Audi will roll out. Audi needs to do this, as being the biggest luxury car brand in the Chinese market, it has the most to lose from market slowdowns. So Audi must work hard to get people into the showroom.
It isn’t just Audi that has been affected by the slowdown, either. BMW, the world’s leading luxury car brand and second largest luxury car seller in the Chinese market, has also felt the effects of the slowdown. Because of this, BMW is also slashing prices and offering incentives. If Audi wants to remain on top and stay competitive, it’s going to need to do everything and anything possible to get buyers into Audi showrooms and now BMW’s. Audi does see the market turning up though, as shown by the .6 increase, so there is light at the end of the tunnel, but it still needs to work hard to reach the targeted sales goals.