Leader – FAW-VW Audi will launch electrical vehicles in China

　　Sohu Auto: Just now, you have also mentioned Audi’s "Leader" strategy. Based on this strategic roadmap, Audi will launch more than ten new models in China this year, and introduce all the 42 models under the Audi brand to the Chinese market by 2015. This roadmap will enrich your product mix, but do you worry the introduction of new products on such a large scale will reduce Audi to a “street car”, and compromise its image as a luxury brand among consumers?

　　Boesch: We should discuss this question from the perspective of the evolution of the entire Chinese market. Great changes have taken place to the Chinese automotive market, particularly to the luxury car market we are watching, and it is a rising trend that people pursue personalized cars. As the market leader that hopes to consolidate its leading position, Audi will obviously need to satisfy consumers’ diversified and personalized demands with suitable products.

　　Besides, 45% of Audi models are not sedans, but SUVs, coupes, cabriolets, super coupes and some sport models. At the same time, we also hope to lead the market trend in new energy vehicles. For one thing, we hope we will become an important participant in this market. Besides, the consumer base of electrical vehicles is not very large for the time being, but it is really growing now. New energy vehicles will be a very important market. For this reason, we hope to bring new energy vehicles, more and newer, to the Chinese market to satisfy the demand of corresponding consumers.

　　Sohu Auto: When it comes to new energy vehicles, Audi formally launched the All-new A6 40 Hybrid, claiming to be the C-Class luxury sedan equipped with the most efficient full hybrid technology, and A8L 40 Hybrid, a D-Class luxury car also claiming to be the most efficient full hybrid car, this May. How about their sales in the two months after launch?

　　Boesch: The current sales figures meet our expectation very well. Of course, these figures are incomparable to those of traditional cars. This is because full hybrid sedans are a small niche and an emerging market, and you can’t expect hybrid vehicles will sell as well as traditional vehicles.

　　Even so, we have introduced these models with great resolution. Why? First, we are a leading brand in the premium car market, so we have the responsibility to introduce the most advanced concepts and products, particularly these environment-friendly models, to the Chinese market. As the most successful premium car brand, we are now preheating the market to lead the market trend in future. Also, we believe, as time goes on, more and more people paying attention to environmental protection will select Audi’s hybrid vehicles. This consumer group will keep growing bigger and bigger, so we have provided these hybrid vehicles combining high driving performance and high fuel efficiency to satisfy their demand.

　　For these two reasons, we must launch heavyweight new energy vehicles at reasonable prices in China at the current moment, from the perspective of either brand building or Audi’s development in China.

　　Sohu Auto: Lexus introduced hybrid vehicles to China’s premium car market through the import of complete vehicles five years ago, and data show Lexus, which is the earliest to enter this field, has taken a share of more than 80% in the hybrid premium car products that have been sold so far. To seize a larger market share, what other plans and moves will Audi carry out, besides introducing new models successively?

　　Boesch: A carmaker can’t expect to lead a specific segment by the time when it releases hybrid vehicles, or by whether it is the first to launch vehicles in the segment. Audi has many examples in this regard. For example, Audi Q5 and Q3 are not the first to have entered their segments, but they have overtaken the products ahead of them, and led respective segments.

　　Our products take pride in outstanding quality, so they have become the benchmarks in respective segments, though they were not the first there. For example, Audi Q5 Hybrid boasts an acceleration time of only 6 seconds to 100km/h, so it is a hybrid vehicle, but does not sacrifice power performance at all. It balances environmental performance and driving pleasure, something Audi is very expert in, and something that makes Audi Q5 enjoy a big potential in the market. We can also see the performance of Audi R18 e-tron quattro at Le Mans 24. This can also prove Audi does have very powerful technical strengths in this regard, and can balance driving performance, sport performance and fuel economy.

　　Sohu Auto: As Audi’s traditional rival, BMW will soon launch an all-new "i brand” for pure electrical vehicles. Will this move influence Audi? How will FAW-VW Audi respond?

　　Boesch: Audi has always persisted in a very responsible and positive attitude towards new energy vehicles. We can also see this point from our performance in this market. First, of the models locally made in China, FAW-VW Audi is the first that has introduced micro hybrid technologies, and put a series of hybrid vehicles to the Chinese market. We do hope to lead the new energy vehicle market.

　　Now, FAW-VW Audi is considering launching some electrical vehicles to maintain our leading position in new energy vehicles. We have started taking a series of concrete actions. Now, both partners are thinking how to do better in development of new energy vehicles in future.

　　Sohu Auto: Just now, you have said both shareholders in the joint venture will jointly launch electrical vehicles, do you mean FAW and Audi will jointly develop these vehicles?

　　Boesch: Probably I am not suitable to answer this question. I am afraid you will have to ask both shareholders in the joint venture how they will develop electrical vehicles, and how they will cooperate in this regard.