Led By New A3, Entry-Level Autos Are Carrying The Load For Audi USA

Timothy Cain
by Timothy Cain

March was the highest-volume U.S. sales month in the Audi A3’s decade-long history. Never before had the A3 topped the 3000-unit mark, but March volume climbed to 3081 sales, equal to 18% of Audi USA’s volume last month.

Year-over-year comparisons for the A3 are all but completely invalid, as a hiatus between the departure of the A3 hatchback and the current A3 sedan resulted in a three-month-long sales-free period between November 2013 and January 2014. That period was followed by only 863 sales during the new A3’s first two months of February and March 2014.

2015’s first-quarter was, however, the best quarter yet for the new A3 despite the fact that January-March is the slowest period of the year for auto sales in the United States.

Audi sold 7743 A3 sedans and cabriolets (S3-inclusive) over the last three months, a 2% gain compared with the final three months of 2014, a 12% improvement over 2014 Q3, and a 13% jump compared to the April-June launch period of last year.

Healthy A3 volume has been tremendously important for Audi USA, which last month reported the brand’s second-best-ever monthly sales total, the best March ever, and the 51st consecutive monthly sales record.

Audi wouldn’t have come close to doing so without such strong entry-level volume, as the aging A4 and A5 fell 32% and 15%, respectively. The A7 was down 30%. A8, R8, TT, and Q7 sales slipped, as well. Excluding the A3 and Q3 crossover, Audi sales were actually down 9%.

But with the A3’s 3081 sales, the Q3’s 1268-unit tally, and the best-selling Q5’s 17% jump, Audi brand sales shot up 20% as the overall U.S. auto industry barely moved the needle forward. New vehicle volume was up just 0.5% in March. Audi’s 14% improvement through the first-quarter is far in excess of the industry’s 6% increase.

The A3 trails Mercedes-Benz’s CLA by 483 units heading into April. Lexus’s hybrid-only CT200h is down 15% to 3399 units in 2015, less than half the A3’s total. Acura is just now launching the 2016 ILX with a more powerful standard engine: ILX sales are down 15% to a CT-besting 3505 year-to-date. The Buick Verano, which straddles the mainstream and entry-level premium categories, is down 17% to 9079 sales so far this year, just 853 sales ahead of the Mercedes-Benz CLA. The CLA’s base price is 35% higher than the Verano’s.

Meanwhile, across the pond, the Audi A3 is the eighth-best-selling vehicle in the United Kingdom so far this year. A3 sales totalled 14,358 in the UK in 2015’s first-quarter, nearly double Audi USA’s total in a market that’s less than one-fifth the size.

Timothy Cain is the founder of GoodCarBadCar.net, which obsesses over the free and frequent publication of U.S. and Canadian auto sales figures.

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  • Bd2 Bd2 on Apr 15, 2015

    Entry level sales also carrying the load for Lexus. CT, NX, IS, RC, ES and RX. At the upper end of the luxury market - it's really just MB and BMW (not counting more niche players like Porsche or Tesla).

  • Sitting@home Sitting@home on Apr 15, 2015

    "nearly double Audi USA’s total in a market that’s less than one-fifth the size." They probably get at least 5 body styles, 3 engines and 2 choices of transmission. The sole A3 model in this country is basically Audi's drip tray for catching anyone they can't coax into a more expensive vehicle.

  • Kjhkjlhkjhkljh kljhjkhjklhkjh A prelude is a bad idea. There is already Acura with all the weird sport trims. This will not make back it's R&D money.
  • Analoggrotto I don't see a red car here, how blazing stupid are you people?
  • Redapple2 Love the wheels
  • Redapple2 Good luck to them. They used to make great cars. 510. 240Z, Sentra SE-R. Maxima. Frontier.
  • Joe65688619 Under Ghosn they went through the same short-term bottom-line thinking that GM did in the 80s/90s, and they have not recovered say, to their heyday in the 50s and 60s in terms of market share and innovation. Poor design decisions (a CVT in their front-wheel drive "4-Door Sports Car", model overlap in a poorly performing segment (they never needed the Altima AND the Maxima...what they needed was one vehicle with different drivetrain, including hybrid, to compete with the Accord/Camry, and decontenting their vehicles: My 2012 QX56 (I know, not a Nissan, but the same holds for the Armada) had power rear windows in the cargo area that could vent, a glass hatch on the back door that could be opened separate from the whole liftgate (in such a tall vehicle, kinda essential if you have it in a garage and want to load the trunk without having to open the garage door to make room for the lift gate), a nice driver's side folding armrest, and a few other quality-of-life details absent from my 2018 QX80. In a competitive market this attention to detai is can be the differentiator that sell cars. Now they are caught in the middle of the market, competing more with Hyundai and Kia and selling discounted vehicles near the same price points, but losing money on them. They invested also invested a lot in niche platforms. The Leaf was one of the first full EVs, but never really evolved. They misjudged the market - luxury EVs are selling, small budget models not so much. Variable compression engines offering little in terms of real-world power or tech, let a lot of complexity that is leading to higher failure rates. Aside from the Z and GT-R (low volume models), not much forced induction (whether your a fan or not, look at what Honda did with the CR-V and Acura RDX - same chassis, slap a turbo on it, make it nicer inside, and now you can sell it as a semi-premium brand with higher markup). That said, I do believe they retain the technical and engineering capability to do far better. About time management realized they need to make smarter investments and understand their markets better.
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