Audi’s Rebrand in China Points to Bigger Changes in the Auto Industry

It’s also a shakeup for the German automaker, which entered China in the late 1980s and became the first global premium brand to adapt its cars to the Chinese market through a partnership with domestic manufacturer FAW . For many years, Audi has been synonymous with luxury abroad, and later became standard equipment in foreign cars. party elite.

But the rapid rise of Chinese automakers, fueled by generous state support and a new middle class, has left global automakers scrambling to catch up. Mitsubishi China halts production Last year; Hyundai and Ford both had closure or Reduce operations At the factory. This month, GM reported that sales at its China operations, which it operates jointly with several Chinese automakers, were down nearly 20% this year. General Motors explain It will restructure its operations in the country, taking a $5 billion write-down in the process.

Volkswagen Group sells Audis as well as Porsche, Bentley, Skoda and Lamborghini vehicles in China, where car sales have fallen 10% this year. this Responsible for dropsProfit fell last quarter in part because of shrinking global sales. Volkswagen said last week It will sell a factory in Xinjiang.

Still, as Ahuja points out, Audi has sold more than 9 million vehicles in China. It wants to stay at home. Audi – No sound! ——This is an attempt to do so. (Perhaps confusingly, the automaker will continue to sell cars in China under its traditional “four-ring” brand.) “I don’t want to touch that tradition,” Ahuja said. “I want to develop it further.”

The brand shakeup also points to deeper dynamics in the Chinese market, where global automakers other than Audi are scrambling to gain a foothold among a new generation of car buyers as Chinese-made cars take off at home and abroad. This shows that the dynamics of consumer preferences are already showing up on the road outside the Asian country.

Back in 2019, BMW defended its decision to go big with the kidney grille on the 7 Series. At the time, BMW Group design chief Adrian von Hooydonk said one of the reasons for such a large, imposing front end was “younger, more extroverted” Chinese customers. He also went on to say, The grille will shrink As in “I heard [BMW’s Shanghai Design Center] Chinese design tastes are evolving rapidly…they increasingly demand subtlety.

brand translation

First, Audi’s decision to cancel the four rings is practical. Jeff Lee, co-founder and partner at Northern Lights Venture Partners, an early-stage Chinese firm with offices in Silicon Valley, said logos like the Audi rings “are very important from an intellectual property perspective. It is difficult for China to be protected”. It’s easy to use five rings or three rings, and then hundreds of Chinese car manufacturers are confused. “AUDI” is easy to pronounce for Chinese people, which is helpful.