Audi Defies Gravity: Up 44.6% In China, Up 19.5 % Worldwide
Powered by new models, especially the Q5, Q7, the A1 and the new A6, Audi is on a seemingly unstoppable tear throughout the world. In May, Audi sold 113,400 units, 19.5 percent more than in May 2010. Year-to-date, Volkswagen’s premium brand is up 17.5 percent to 535,400 units. China has eclipsed Germany as Audi’s most important market. In Germany, Audi is up 18.4 percent, in China an amazing 44.6 percent. Sales are also up solidly in the other BRIC markets.
Audi worldwide results May 2011
AudiMay ’11May ’10ChangeYTD ’11YTD ’10ChangeWorldwide113,40094,89519.5%535,400455,60117.5%Europe65,40058,37212.0%315,500278,62713.2%D23,40119,75918.4%101,88888,40415.3%GB9,0398,8921.7%52,79348,0729.8%Italy5,6375,2607.2%27,74326,0556.5%France5,3084,37321.4%26,93721,59724.7%Spain3,8724,074-5.0%20,24119,4753.9%Russia2,3021,63341.0%9,5367,66324.4%United States10,4579,20513.6%45,85839,83915.1%Brazil46129556.3%1,6271,23332.0%Asia-Pacific30,00021,35240.5%138,100109,02326.7%China25,15317,39644.6%113,04188,45127.8%India408200104.0%2,3941,167105.1%China promises even more growth. The plant in Changchun had been capacity constrained to 200,000 units per year. Now, the plant has been extended to 300,000 units annually. The plant currently makes the A4L, the A6L and the Q5.
Volume production of the new Q3 started today in Martorell, Spain. According to reports in Chinese media, the Q3 will be produced in a new plant in Foshan near Guangzhou in 2013.
May ’11May ’10ChangeYTD ’11YTD ’10ChangeWorldwide113,40094,89519.5%535,400455,60117.5%Europe65,40058,37212.0%315,500278,62713.2%D23,40119,75918.4%101,88888,40415.3%GB9,0398,8921.7%52,79348,0729.8%Italy5,6375,2607.2%27,74326,0556.5%France5,3084,37321.4%26,93721,59724.7%Spain3,8724,074-5.0%20,24119,4753.9%Russia2,3021,63341.0%9,5367,66324.4%United States10,4579,20513.6%45,85839,83915.1%Brazil46129556.3%1,6271,23332.0%Asia-Pacific30,00021,35240.5%138,100109,02326.7%China25,15317,39644.6%113,04188,45127.8%India408200104.0%2,3941,167105.1%
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Both Volkswagen and Audi always struck me as the ones who were best positioned to take advantage of the fallout from the Japanese disaster. They've been able to maintain a consistent and stable R&D program through carmeggedon and you can say what you want, but their marketing strategies and overall business plan seem to be very well thought out (at least from what we can glean). More power to 'em, if you ask me.
The R&D investment made during the downturn has really helped VW/Audi. The other major improvement Audi made was the new MLP architecture employed by the A4/A5/A6/A7/A8 and the upcoming MQB architecture. Both of these new modular component systems are wringing costs down by about 20% which is allowing VW/Audi to reinvest more highly than others. If the recent reliability trends continue it bodes well for Audi.