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Audi's China EV Gamble Falters: Sales Lag Behind Rivals
3 Mar
Summary
- New Audi E5 Sportback electric vehicle sales are disappointing in China.
- The EV's infotainment system has bugs and driver-assistance features are slow.
- Chinese local brands are rapidly gaining market share from foreign automakers.
German automaker Audi's recent rebranding in China, dropping its iconic four rings for a simpler 'AUDI' moniker on its new electric vehicles, has yet to revitalize sales. The debut E5 Sportback model, launched in September, sold a mere 605 units in January, with total sales from launch to December reaching 6,650. This performance lags significantly behind rivals like Tesla and Xiaomi.
Consumer feedback indicates that while the styling is appreciated, the infotainment system is described as a "work-in-progress" with persistent bugs. Issues such as the air conditioning defaulting on startup and slow driver-assistance features hinder the driving experience. These shortcomings come as Chinese carmakers, including Xiaomi, rapidly gain market share, now accounting for about two-thirds of domestic car sales.
Audi's sales in China fell 5% last year, with fully-electric vehicle sales plummeting by 44%. The SAIC-Audi joint venture has introduced incentives, including a 30,000 yuan price reduction and flexible financing. Despite these efforts and the E5 Sportback winning China Car of the Year, the brand faces intense competition. The upcoming AUDI E7X is slated for debut at the Beijing auto show in April, as Audi aims to bolster its presence in the crucial Chinese market.
