- Audi believes that regional differences have put an end to the global car.
- Audi’s spinoff brand AUDI (without the Four Rings) is for China only.
- The four-ring models will continue in China.
Audi was the first luxury automaker to enter China in 1988, six years before BMW and 17 years before Mercedes. It didn’t take long for the trio to discover that Chinese customers prefer more spacious cars with back seats. All of them adapted their global models by increasing their wheelbases for locally produced versions. Since then, Western brands have launched myriad models in China alone, including long-wheelbase SUVs.
With the help of SAIC, Audi has taken things to the next level by setting up a separate car brand specifically for the Chinese market. Recently founded AUDI, written in capital letters and without the iconic Four Rings, sells two models in China that you can’t find anywhere else. The wagon-esque E5 Sportback led the way before the E7X SUV arrived, and a new sedan is also on the way.
Why is Audi facing so much trouble? Simple: It believes that the era of the global car is over. The days when a one-size-fits-all formula worked are gone and automakers need to adapt their vehicles to regional preferences. As the saying goes, different strokes for different folks. In an interview with Australian magazine go autoChief technology officer Reuven Mohr said there are fundamental inconsistencies between what buyers want around the world:
Photo by: Audi
‘I think the idea of the global car – that is, a car that fits the world – is over, to be honest, because it doesn’t fit America (and) China anymore. You need this kind of local-for-local column.’
His view has also been echoed by the head of Audi’s fellow Volkswagen brand in China. Last year, Ralf Brandstätter said that while Europeans want “tactile controls, long-term durability and driving dynamics,” Chinese buyers prefer “AI-first, connected vehicles, with seamless voice controls and smart cockpits.”
This does not mean that Audi will stop selling its global cars in China. Some of its four-ringed models will remain, catering to customers who still want a long-running nameplate and one of its German character. However, the CTO believes that future growth is likely to come from the AUDI brand. These look completely different inside and out from those wearing the iconic badge, which dates back to 1932, when Auto Union was created.
It’s not just Audi models from China that are adopting the new styling. The main Audi brand is also adopting a new design language. We’ve already seen it on the Concept C and Nuvolari sports cars, and the electric A4 is expected to be the first mass-production model to use it when it arrives in 2028. The “strive for clarity” philosophy also brings interior changes, with Audi planning to improve quality and reintroduce more physical switchgear.
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Source: Audi
Motor1’s Opinion: The old ways of doing things no longer work because today’s market offers much more variety. The rise of domestic brands in China has made competition fierce in the world’s largest car market. For years, Audi, BMW and Mercedes had no reason to worry about direct rivals because there were none.
However, Chinese automakers have come a long way over the past few decades. They were once ridiculed for copying the designs of global cars, but have now become a force to be reckoned with. As a result, legacy brands are struggling in China, where local companies are offering much cheaper vehicles that, in many cases, are far better equipped.
I would like to add that brand reputation is no longer as important as it once was, as many young companies can deliver attractive products at significantly lower prices.
