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Audi makes China 2nd target market
( 2002-04-26 14:14 ) (1 )

Audi AG, the luxury arm of German auto giant Volkswagen AG, says China is its second most important overseas market after the United States.

China has become increasingly important to the company with its growing demand for Audi cars even though its current sales in China account for a only a small proportion of its global sales, said Kevin McCann, head of Audi's China operation.

"We intend to continue efforts to bring more new models into China and strengthen our leadership on the Chinese luxury car market," McCann said.

Last year, Audi AG sold 725,000 cars worldwide amounting to an 11-per cent increase from 2000, McCann said. Audi sales in China, including imports and those made in the nation, amounted to 29,370 units last year, up 69 per cent from 2000.

The robust sales in China last year accounted for 30 per cent of the Chinese luxury passenger car market for models priced at above 300,000 yuan (US$36,100).

He said its exports to China were expected to double to more than 2,000 units this year.

Sales of the locally made Audi A6 in the Changchun-based First Automotive Works Volkswagen will increase slightly to 29,500 units this year.

McCann made his remarks during an recent launching ceremony of two sports cars - the TT Coupe and Roadster in Shanghai.

Prices of the two models range from 550,000 yuan (US$66,300) to 650,000 yuan (US$78,300) based on China's tariff cuts on auto imports.

In January, China slashed its tariffs to 43.8 to 50.7 per cent from 70 to 80 per cent, the biggest cut following its entry into the World Trade Organization. The tariffs will decline to 25 per cent by mid-2006.

McCann said the Audi AG would launch its A4 Cabriolet and All-Road Quattro sport utility vehicle in China later this year.

Besides the locally made A6, the company also currently sells its top-notch Audi A8 and A4 in China.

Sales of the A8 amounted to 424 units in China last year, making it the fourth largest number of sales around the world.