Audi questions Chinese brands’ ability to serve customers

Audi Australia The company said the emphasis on customer service will help its cars stand out at a time when a flood of new brands are entering the market.

“It’s the beginning of a shift. There are a lot of cars and Chinese manufacturers coming in,” Audi Australia CEO Geoff Mannering told Automotive Expert.

“It’s very dynamic. What’s going to happen over the next five years is you’re going to have a lot of cars in the $40-75,000 range… that’s technically the volume.

“There are some high-end manufacturers that are a little bit more expensive than that. The subject of the current rules is to bring it under fringe benefits and LCT… that will also have an impact.

“I think every new competitor in the market is a threat in some way, whether it’s price position or pulling customers down to a different price level.”

Mr Mannering doubts those brands can offer the same level of service and support as his company.

“If there’s a problem with a car and it needs to be recalled or it needs to be repaired, where is the infrastructure to handle that?” he said.

“I think you still have to always remember that some of the traditional manufacturers have been around for a while, some of the big ones, (they) have the infrastructure behind their brands.”

He believes that some of these brands will “flood the market with cars” and while they may offer nice vehicles, they won’t be able to provide the same ownership experience as Audi.

“To be honest, I believe that every car on the market is very subjective, there may be some bad cars, but all are good,” he said.

“Design is nice… people will buy it, they will like it, but I think the biggest differentiator in the future is going to be the experience I get when I spend my money on it. The ownership experience.”

“This is a major focus for us globally and we invest a lot of time and energy with our dealers and customers.”

Additionally, Mr Mannering said he believed the dealer network would be affected by the influx of new brands into the market.

“I think with so many brands coming in, there’s going to be pressure on everyone.” he said.

“It puts pressure on the retail networks because they are grabbing brands and it’s a profitability issue because probably the margins – I don’t know what their margins are, but I can say they are not high.”

While Chinese brands have traditionally stuck to the low-end market, some have recently begun to move into the high-end market, prompting them to quickly attack Audi’s territory.

For example, Great Wall Motor’s new Tank 500 SUV tops out at $73,990. MG’s electric Cyberster convertible will surpass that price point, with a sticker price of more than $100,000.

Alongside these cheaper brands that are increasingly looking upmarket are brands like Zeekr that are also positioning themselves as offering higher-end products.

Zeekr will offer a slightly smaller alternative to Audi’s Q4 e-tron with its X crossover; its 7X SUV is also expected to be a competitor to the Q6 e-tron.