<\/p>\n
After nearly a century of Audi\u00a0AG branding every car with four interlocking rings, the German automaker shed its iconic marker last year in China, betting a sleek, tech-heavy electric vehicle would reignite consumer interest.<\/p>\n
So far, the revamp \u2013 it\u2019s now just AUDI, in all caps \u2013 has done little to kick-start a turnaround in sales.<\/p>\n
While the E5 Sportback, the debut model from the sub-brand produced by Volkswagen AG\u2019s joint venture with SAIC Motor Corp., has garnered critical acclaim, the view from the showroom floor is less enthusiastic.<\/p>\n
Only 605 units were sold in January, according to data compiled by Bloomberg Intelligence. Between its launch in September and the end of December, 6,650 units have been delivered, according to the company.<\/p>\n
Even fans of the car, exclusive to China, warn of several wrinkles that need to be ironed out.<\/p>\n
\u201cI prefer cars that are a bit more niche and I really love the styling,\u201d said Neo Shen, a Shanghai-based engineer who bought the most premium version of E5 Sportback. The car retails for between 235 900 yuan ($34 000) and 319 900 yuan.<\/p>\n
But \u201cthe infotainment system is a total work-in-progress and full of bugs,\u201d he said. The air conditioning turns on by default every time he starts the car, and the driver-assistance features are too slow for city driving, making him miss off-ramps on highways.<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
Like most foreign automakers, AUDI is pouring resources into tailoring its lineup to compete with the digital sophistication of popular local brands like Xiaomi Corp., which effectively offers a smartphone on wheels.<\/p>\n
Viewed as better able to meet local tastes, and with the ability to bring advanced EVs to market at a rapid pace, Chinese carmakers have seen explosive sales growth in their home market. They accounted for about two-thirds of the country\u2019s retail car sales last year, up from less than 40% five years earlier, according to industry data.<\/p>\n
\u201cThe brand equity of the German premium brands in China has disintegrated much faster than anyone expected,\u201d said Matthias Schmidt, an automotive analyst based near Hamburg. \u201cConsumers there are increasingly buying local brands, and there\u2019s reasonable concern that those sales won\u2019t come back.\u201d<\/p>\n
AUDI\u2019s early struggles with the E5 Sportback contrast with both Tesla Inc.\u2019s Model Y and Xiaomi\u2019s YU7 \u2013 the car\u2019s main direct rivals \u2013 which have been hitting deliveries of more than 30 000 units a month.<\/p>\n
The tepid response underscores ongoing challenges in winning back market share in China. AUDI\u2019s sales in the country fell 5% last year to 617,514 vehicles, and the broader Volkswagen group saw an 8% drop. The decline is even more pronounced among fully-electric vehicles, where sales cratered by 44%.<\/p>\n
Despite the precarity, China\u2019s significance as the world\u2019s largest auto market means it remains crucial for many global brands. The country is VW\u2019s biggest single market, accounting for roughly 30% of total group deliveries last year, and 38% for AUDI.<\/p>\n
In an effort to boost sales, the SAIC-AUDI joint venture recently launched an incentive program which includes a tax subsidy, cash rebate and trade-in premium that, combined, cuts the price by 30,000 yuan. It\u2019s also offering customers the option of flexible financing options, such as five-year interest-free or seven-year low-interest loans.<\/p>\n
The E5 Sportback\u2019s win as China Car of the Year <\/em>award is encouraging and AUDI is committed to its China strategy, focusing on a dual-brand approach with more new models due this year, the company said.<\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n Cars like the AUDI E5 Sportback \u201care at the forefront of the competition,\u201d VW Chief Executive Officer Oliver Blume said in Berlin in January. \u201cThe vehicle is profitable and attracts precisely the young and tech-savvy customers we want,\u201d VW\u2019s China head Ralf Brandst\u00e4tter said at the same event.<\/p>\n Those credentials are facing intense scrutiny in China, where consumers are especially discerning about technology and value. Beyond the bugs identified by Shen, some buyers are being put off by what they perceive as a lack of bang for their buck.<\/p>\n One key issue is the E5 Sportback\u2019s charging time, which sees its 800-volt architecture needing 15 minutes to add 350 kilometres (217 miles). That compares with 10 minutes for 400 kilometres on the 279 900-yuan LS6, a compact SUV made by IM Motors, a joint venture established in part with SAIC.<\/p>\n AUDI also drew the ire of early E5 Sportback adopters in November when, just months after the model\u2019s official launch, it released a special variant with upgraded features from tyres to air suspension. Some existing owners took to social media to criticise the move as a panic upgrade and a betrayal of loyal fans.<\/p>\n Next up for the Chinese market is the AUDI E7X, the series\u2019 second model, which is set to make its official debut at this year\u2019s Beijing auto show in April.<\/p>\n The carmaker has previously said it has no plans to export \u2018in China, for China\u2019 models like the E5 Sportback, which sparked envy in Europe for the comparatively low price of its top-spec version.<\/p>\n \u00a9 2026 Bloomberg<\/p>\n<\/p><\/div>\nSlow charge<\/span><\/h3>\n