Audi (奥迪) has made a bold gambit to expand its China market share, and one that involves some interesting tactics. All this comes with the release of the new Audi E5 Sportback – a China-exclusive, all-electric car for the mass market.
The E5 Sportback came off production lines in Anting, China, in mid-August with the first deliveries hitting showrooms and roads throughout September. To bring the product to market, Audi teamed up with Chinese motor company SAIC, the country’s largest auto group.
The E5, the first in a range of cars set to be released over the next two years, blends Chinese technology and German engineering. But it’s their new marketing strategies that are piquing interest. And no, this time they’re not trying to crack the designer clothing world.
First off, it’s an AUDI, not an Audi… The company has chosen to drop the famous four-rings logo – long a symbol of automobile luxury – for the Chinese market. Instead, they’re opting for the brand name spelt out in all block capitals.
They’re also cutting profit margins to bring the vehicle to market at a very competitive price point. An AUDI E5 Sportback will set you back RMB 235,900 to RMB 319,900 (about USD 33,000 – USD 45,000) depending on the model. Competing EVs like the Stelato S9T and the Nio ET5T go for RMB 328,000 and RMB 298,000 respectively.
All this is likely a move to attract a younger, more tech-savvy customer base rather than try to outcompete in an already tough-to-crack Chinese luxury car market. The pace of development in China’s EV market also creates more room for new competition.
And the E5 is aiming to compete. AUDI and SAIC have developed the car on an Advanced Digitized Platform. This system enables faster charging, over-the-air updates and China-market-tailoring in sensors that detect scooter-riding delivery drivers.
With all this comes the hope that the E5 will lead the pack in the world of smart, interconnected vehicles.
CEO of the Audi-SAIC cooperation, Fermín Soneira, said “Every vehicle from the AUDI brand embodies the best of both worlds: iconic design, premium quality, technical precision, emotional driving dynamics, combined with China’s cutting-edge technology, innovation and digital ecosystem.”
