Market Drivers - Audi China

Market drivers

In 2009 China have became the world’s biggest car market when they replaced the US The outlook of the automotive industry in China is very prosperous. In 2011 the industry witnessed a sales figure of 15 million passenger car units. According to the CAAM (Julian Bush, 2012) in 2012 8-10% growth is predicted.The fast motoroziation of the country means the Chinese streets are becoming crowded with passenger cars. The market for luxury goods in the country is growing rapidly and the luxury car buyers prefer German brands. The richest Chinese cities for instance Beijing and Shanghai see the latest models of premium cars. In the first 7 month of the year sales of luxury cars increased by 36%. China replaced Germany as the world’s second largest luxury market last year and will take over US by the end of the decade. While the European car market is shrinking it worth to concentrate on China. According to the senior analyst of VW China has surpassed the US related to VW’s luxury brands. More then 400 000 Audi’s will be sold in China this year which means a robust 30% increase comparing to 2011. (chinadaily)

Chinese customers are very brand conscious. Audi cars are very prestigous and are preferred by the chinese governmental organizations. Nearly the fifth of the sales go to public sector bodies. (NY Times) The black Audies are status symbols. They are linked with power. Those privileged people who use Audi usually have a driver. It means they sit on the backseats and need more space for their legs. It leads to long chassis and larger interior. Audi already replied on the demand with flexibility and the launched the long chassis versions of A4, A6, and A8. To sum up the key of Audi’s success was the gvermental sector. However there is a room for growth in the market of SUVs. Audi already has wide range of SUV sin the global portfolio. Audi has to address the SUVs to the high-income individuals. Chinese high-net worth invidiuals