Mercedes-Benz and BMW continue to erode the leading edge of Audi in China. In the first quarter, Audi’s share of the top three luxury cars fell below 40% for the first time. In the first five months of this year, Audi sold 112,000 vehicles in China, and the 28% increase was less than half the growth of BMW and Mercedes. Based on this calculation, Audi's annual sales will be around 260,000 units, but the target of 1 million for three years requires Audi to complete at least 300,000 sales this year. Recently, Mercedes-Benz and BMW have announced plans to expand production capacity in China and have increased investment. In the face of fierce competition from competitors, Audi is a bit slow.
Shock "boss"
In the domestic luxury car sector, Audi has been walking in front of Mercedes-Benz and BMW. The domestic Audi A6 12 years ago brought a steady stream of profits to FAW-Volkswagen. While Mercedes and BMW of that time only imported cars in China, the cost and price disadvantages were obvious. After a reincarnation, the distance between the "troika" continues to shrink, and Audi's unique competitive landscape is changing.
According to the latest statistics, in the first five months of this year, BMW's sales volume in China was 10,800, which was only less than 12,000 units less than Audi. Not to be outdone Mercedes-Benz also came up with a beautiful transcript, selling 78,100 vehicles in five months. Although Audi's sales in China are still ahead of its competitors, BMW and Mercedes have grown more than twice as fast as Audi - Audi has grown 28% in the first five months, while BMW has grown by 71% and Mercedes has increased by 70%.
Mercedes-Benz and BMW in China are experiencing an impact on Audi's “boss†status with a growth rate of more than 70%. If calculated according to the current growth rate, BMW's total sales in China this year will surpass Audi at the end of the year, Mercedes-Benz sales will reach Audi in the second quarter of next year.
Looking closer and closer, Audi, the leader of China's luxury car market, should be clear that BMW and Mercedes are becoming mainstream market players and are catching up faster and faster. Analysis of the industry, taking into account Audi's market base, it is difficult to maintain the previous high-speed growth, and the high-profile return of BMW and Mercedes-Benz, is constantly dispelling the advantages of Audi.
Capacity competition
The bottleneck in production capacity in China has been plaguing the three major luxury car manufacturers in Germany. If it is not possible to rapidly increase production capacity, it is only a matter of time before market share is eroded by competitors. In order to achieve the goal of expanding the Chinese market, BMW and Mercedes-Benz will upgrade their localization strategy to an unprecedented level this year.
Last month, BMW announced that it will increase the investment of the new plant from 560 million euros to 1 billion euros together with its joint venture partner, Brilliance Automotive, and will start production of the engine in China in 2013. After the new plant is put into operation, the total annual production capacity of BMW Brilliance will exceed 150,000. Mercedes-Benz Chairman Cai Che also reiterated in the near future that Mercedes-Benz will endeavor to convert the sales ratio of domestic and imported cars from 3:7 to 7:3 to achieve the sales target of 300,000 units in 2015. In line with this goal, Mercedes-Benz will jointly invest RMB 2 billion with BAIC to establish an engine plant, which is Mercedes-Benz’s first engine plant overseas. According to sources close to Mercedes-Benz, Beijing Benz will announce plans for a significant expansion of production capacity in the near future.
Contrary to competitors' strategies, Audi clearly wants to make bigger imported vehicles to make up for the "deficit" of the Chinese market. Zhang Xiaojun, executive deputy general manager of FAW-Volkswagen Audi Sales Division, said that Audi’s plan to “take all the family cars to China to sell in 2015†may be ahead of schedule. "In the future, we will introduce more imported cars to enrich Audi's brand image."
In terms of models, Mercedes-Benz will start production of the SUV model GLK by the end of this year, and BMW will start production of the X1. The Audi Q3, which is generally considered to be in direct competition with the BMW X1, is still unknown in its localization time. "In order to adapt to the road conditions in China, please give us more time." Zhang Xiaojun said.
Marketing
In the rapidly developing Chinese market, sales are far more important than face. In the way of brand marketing, BMW and Mercedes are moving closer and closer to consumers. They use more Chinese elements in marketing programs to increase public affinity and win the favor of Chinese consumers.
BMW successfully launched the “BMW Brave†brand strategy and interpreted the mission and value of the BMW brand from the perspective of Chinese culture. Mercedes-Benz put forward the "only the best" brand strategy. This year marks the 125th anniversary of the Mercedes-Benz brand's founding. It will seize this marketing opportunity and make full use of localized articles. "Benz's sales still lag behind Audi and BMW, but brand reputation is Mercedes's biggest advantage," said Mao Jingbo, vice president of Mercedes-Benz China Market.
As a latecomer to the high-end car market, Audi's exalted brand is not as "deep in skill" as BMW and Mercedes-Benz. Through domestic production of A6, A4 and other models, Audi has accumulated a large number of users, but this group of consumers is mainly concentrated in the 200,000-500,000 yuan level. In the face of aggressive opponents and gradually lost advantages, Audi had to re-explore the brand history and shape the noble descent of the product. However, compared with competitors, advancing with the times, Audi's Yingjie Meeting and Tong Mengyuan are slightly obsolete and lack the attractiveness of attracting young customers.
The "troika" matchup in China has entered a critical period of close combat. Audi is desperate to maintain its inherent advantages and hopes to win the championship globally. Mercedes-Benz and BMW hope to catch up in China to maintain their sphere of influence.
Shock "boss"
In the domestic luxury car sector, Audi has been walking in front of Mercedes-Benz and BMW. The domestic Audi A6 12 years ago brought a steady stream of profits to FAW-Volkswagen. While Mercedes and BMW of that time only imported cars in China, the cost and price disadvantages were obvious. After a reincarnation, the distance between the "troika" continues to shrink, and Audi's unique competitive landscape is changing.
According to the latest statistics, in the first five months of this year, BMW's sales volume in China was 10,800, which was only less than 12,000 units less than Audi. Not to be outdone Mercedes-Benz also came up with a beautiful transcript, selling 78,100 vehicles in five months. Although Audi's sales in China are still ahead of its competitors, BMW and Mercedes have grown more than twice as fast as Audi - Audi has grown 28% in the first five months, while BMW has grown by 71% and Mercedes has increased by 70%.
Mercedes-Benz and BMW in China are experiencing an impact on Audi's “boss†status with a growth rate of more than 70%. If calculated according to the current growth rate, BMW's total sales in China this year will surpass Audi at the end of the year, Mercedes-Benz sales will reach Audi in the second quarter of next year.
Looking closer and closer, Audi, the leader of China's luxury car market, should be clear that BMW and Mercedes are becoming mainstream market players and are catching up faster and faster. Analysis of the industry, taking into account Audi's market base, it is difficult to maintain the previous high-speed growth, and the high-profile return of BMW and Mercedes-Benz, is constantly dispelling the advantages of Audi.
Capacity competition
The bottleneck in production capacity in China has been plaguing the three major luxury car manufacturers in Germany. If it is not possible to rapidly increase production capacity, it is only a matter of time before market share is eroded by competitors. In order to achieve the goal of expanding the Chinese market, BMW and Mercedes-Benz will upgrade their localization strategy to an unprecedented level this year.
Last month, BMW announced that it will increase the investment of the new plant from 560 million euros to 1 billion euros together with its joint venture partner, Brilliance Automotive, and will start production of the engine in China in 2013. After the new plant is put into operation, the total annual production capacity of BMW Brilliance will exceed 150,000. Mercedes-Benz Chairman Cai Che also reiterated in the near future that Mercedes-Benz will endeavor to convert the sales ratio of domestic and imported cars from 3:7 to 7:3 to achieve the sales target of 300,000 units in 2015. In line with this goal, Mercedes-Benz will jointly invest RMB 2 billion with BAIC to establish an engine plant, which is Mercedes-Benz’s first engine plant overseas. According to sources close to Mercedes-Benz, Beijing Benz will announce plans for a significant expansion of production capacity in the near future.
Contrary to competitors' strategies, Audi clearly wants to make bigger imported vehicles to make up for the "deficit" of the Chinese market. Zhang Xiaojun, executive deputy general manager of FAW-Volkswagen Audi Sales Division, said that Audi’s plan to “take all the family cars to China to sell in 2015†may be ahead of schedule. "In the future, we will introduce more imported cars to enrich Audi's brand image."
In terms of models, Mercedes-Benz will start production of the SUV model GLK by the end of this year, and BMW will start production of the X1. The Audi Q3, which is generally considered to be in direct competition with the BMW X1, is still unknown in its localization time. "In order to adapt to the road conditions in China, please give us more time." Zhang Xiaojun said.
Marketing
In the rapidly developing Chinese market, sales are far more important than face. In the way of brand marketing, BMW and Mercedes are moving closer and closer to consumers. They use more Chinese elements in marketing programs to increase public affinity and win the favor of Chinese consumers.
BMW successfully launched the “BMW Brave†brand strategy and interpreted the mission and value of the BMW brand from the perspective of Chinese culture. Mercedes-Benz put forward the "only the best" brand strategy. This year marks the 125th anniversary of the Mercedes-Benz brand's founding. It will seize this marketing opportunity and make full use of localized articles. "Benz's sales still lag behind Audi and BMW, but brand reputation is Mercedes's biggest advantage," said Mao Jingbo, vice president of Mercedes-Benz China Market.
As a latecomer to the high-end car market, Audi's exalted brand is not as "deep in skill" as BMW and Mercedes-Benz. Through domestic production of A6, A4 and other models, Audi has accumulated a large number of users, but this group of consumers is mainly concentrated in the 200,000-500,000 yuan level. In the face of aggressive opponents and gradually lost advantages, Audi had to re-explore the brand history and shape the noble descent of the product. However, compared with competitors, advancing with the times, Audi's Yingjie Meeting and Tong Mengyuan are slightly obsolete and lack the attractiveness of attracting young customers.
The "troika" matchup in China has entered a critical period of close combat. Audi is desperate to maintain its inherent advantages and hopes to win the championship globally. Mercedes-Benz and BMW hope to catch up in China to maintain their sphere of influence.
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