Audi not sexy enough for Chinese consumers

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Business Week are reporting that Audi is loosing its sex appeal to its rivals BMW and Mercedes, but is that really the case? The A6L is the cornerstone of the Chinese governments automotive fleet, but the last generation A4 was certainly a ‘personal use’ vehicle and the new A4L seems to span the lines of personal use and business use where as the 3-Series from BMW and C-Class from Mercedes are too small for business users that prefer to be chauffeured during the week and drive themselves at the weekend.

Audi AG’s status as the carmaker of choice for Chinese bureaucrats has emerged as an obstacle in the world’s biggest automobile market as BMW and Mercedes-Benz gain traction with a generation of rich young buyers.

Audi’s share of China’s luxury-car sales has tumbled by 25 percent in less than two years as state agencies and executives tighten budgets and younger buyers seek alternatives to sedans traditionally used by the government. The German automaker supplied an estimated 70 percent of cars used by the government and state-held enterprises during the 1980s.

“Audi is seen as being a bit old-fashioned because of its association as being a government car,” said Shaun Rein, Shanghai-based managing director of China Market Research Group. “Wealthy consumers today want something sexier, more indulgent, which is why BMW and Mercedes have done well.”

Audi are obviously aiming to capture more of the personal use market with the introduction of the A1 in to China as a premium small car to rival the Fiat 500 and the MINI range, but in the next few months they are going to introduce the A3 hatchback and sedan, and also A5 in to China as locally made markets which should bring back the sex appeal to the four rings.

Update: I miscounted the Audi rings. Shame on me. I was thinking of buying an A3 too. Thanks to those that noticed.