It's also a new development for the German automaker, which entered China in the late 1980s and became the first global premium brand to adapt its autos for the Chinese market thanks to a partnership with domestic manufacturer FAW. For many years, Audi was synonymous with exotic luxury and later became the standard ride party elite,
But the rapid growth of Chinese automakers, fueled by generous state support and a new middle class, has left global automakers in trouble. mitsubishi Stopped production in China last year; Hyundai and Ford have Closed Or operations reduced In factories. This month, General Motors reported that its China business, which it operates jointly with several Chinese automakers, had seen sales decline by nearly 20 percent this year. GM Said It will restructure its business in the country, taking a $5 billion write-down in the process.
Volkswagen Group, which sells Audi and Porsche, Bentley, Skoda and Lamborghini in China, has seen a 10 percent decline in vehicles sold in the country this year. drop was responsibleProfits declined last quarter, partly due to a decline in global sales. Volkswagen said last week It will sell a plant in Xinjiang.
Yet, as Ahuja points out, Audi has sold more than 9 million vehicles in China. He wants to live in the country. The Audi—no ring!—is an attempt to do just that. (Perhaps confusingly, the automaker will also continue to sell autos under the heritage “Four Ring” brand in China.) “I don't want to touch that heritage,” says Ahuja. “I want to develop it further.”
The brand shift also points to deeper dynamics in the Chinese market, where global automakers beyond Audi are struggling to hold on to a new generation of car buyers as Chinese-made vehicles at home and abroad Auto is in full swing. And it points to a change in consumer preferences that is already visible on the streets outside the Asian country.
In 2019, BMW was defending its decision to take a big step forward with its 7-Series kidney grilles. At the time, BMW Group Design Director Adrian von Hooydonk cited the huge, impressive front end as one reason for the “younger and more extroverted” China customer. He also said that the grills will shrink back As in “I heard [BMW’s Shanghai Design Center] Design tastes in China are rapidly evolving…they are increasingly demanding precision.
brand translation
For one, Audi's decision to eliminate the four rings is practical. “It's very difficult to defend a logo like Audi's four rings in China from an intellectual property perspective,” says Jeff Lee, co-founder and partner at Northern Light Venture Capital, an early-stage Chinese firm with offices in Silicon Valley. It's easier to use five rings or three rings and then hundreds of Chinese automakers just get confused. It helps that “Audi” is easy for Chinese speakers to pronounce.
