Audi Defies Gravity: Up 44.6% In China, Up 19.5 % Worldwide

Bertel Schmitt
by Bertel Schmitt

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
Bertel Schmitt

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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  • Philosophil Philosophil on Jun 07, 2011

    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.

  • Hreardon Hreardon on Jun 07, 2011

    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.

    • Bertel Schmitt Bertel Schmitt on Jun 07, 2011

      The fact that the whole Volkswagen AG did not cut down its R&D budget and did not stop developing product during the downturn is just beginning to show. It will become very evident in the years to come.

  • MaintenanceCosts In Toyota's hands, these hybrid powertrains with a single motor and a conventional automatic transmission have not been achieving the same kind of fuel economy benefits as the planetary-gear setups in the smaller cars. It's too bad. Many years ago GM did a group of full-size pickups and SUVs with a 6.0L V8 and a two-motor planetary gear system, and those got the fuel economy boost you'd expect while maintaining big-time towing capacity. Toyota should have done the same with its turbo four and six in the new trucks.
  • JMII My C7 isn't too bad maintain wise but it requires 10 quarts of expensive 0W-40 once a year (per GM) and tires are pricey due size and grip requirements. I average about $600 a year in maintenance but a majority of that is due to track usage. Brake fluid, brake pads and tires add up quickly. Wiper blades, coolant flush, transmission fluid, rear diff fluid and a new battery were the other costs. I bought the car in 2018 with 18k in mileage and now it has 42k. Many of the items mentioned are needed between 20k and 40k per GM's service schedule so my ownership period just happens to align with various intervals.I really need to go thru my service spreadsheet and put track related items on a separate tab to get a better picture of what "normal" cost would be. Its likely 75% of my spend is track related.Repairs to date are only $350. I needed a new XM antenna (aftermarket), a cargo net clip, a backup lamp switch and new LED side markers (aftermarket). The LEDs were the most expensive at $220.
  • Slavuta I drove it but previous style. Its big, with numb steering feel, and transmission that takes away from whatever the engine has.
  • Wjtinfwb Rivaled only by the Prowler and Thunderbird as retro vehicles that missed the mark... by a mile.
  • Wjtinfwb Tennessee is a Right to Work state. The UAW will have a bit less leverage there than in Michigan, which repealed R t W a couple years ago. And how much leverage will the UAW really have in Chattanooga. That plant builds ID. 4 and Atlas, neither of which are setting the world afire, sales wise. I'd have thought VW would have learned the UAW plays by different rules than the placid German unions from the Westmoreland PA debacle. But history has shown VW to be exceptionally slow learners. Watching with interest.
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