Audi is facing a tough battle in China, where sales have been declining due to stiff competition from local automakers offering more advanced options. To combat this trend, Audi has partnered with a Chinese automaker to develop a new model specifically tailored to the Chinese market, and it seems to be paying off.
The newly launched AUDI brand in China has made a strong impression right out of the gate. The debut model, the E5 Sportback, which is a result of a partnership with SAIC, received over 10,000 orders within just 30 minutes of opening the order books. This electric vehicle is built at an existing SAIC-Volkswagen plant in Shanghai and is exclusive to the Chinese market.
Ralf Brandstätter, a VW board member for China, described the response to the E5 Sportback as “overwhelming” on LinkedIn. The car comes with a single rear-mounted motor and a 76-kWh battery in the base version, offering 295 horsepower and a range of 384 miles on the CLTC cycle. The flagship model, equipped with a dual-motor Quattro system and a 100-kWh battery, delivers 776 hp, a range of 402 miles, and can accelerate from 0 to 62 mph in just 3.4 seconds, all for a price of $45,000.
Despite its affordable price, the E5 Sportback boasts advanced features such as rear-wheel steering, adaptive air suspension, 800-volt charging, and a LiDAR setup. The interior is dominated by a pillar-to-pillar 27-inch 4K display, catering to local preferences in China. The minimalist design and screen-heavy interior set it apart from global Audi models, making it a unique offering in the market.
The decision to launch a separate brand from Audi in China is a bold move by the Volkswagen Group. The AUDI brand aims to attract new customer groups in China that were not previously covered by the Four Rings. The response to the launch has been positive, but the real test will be whether AUDI can establish a lasting presence in China’s competitive EV market.
The E5 Sportback may not win any beauty pageants, but its value proposition and unique features make it a compelling option for Chinese consumers. With two additional models planned for the coming years, AUDI is set to make a significant impact in China’s rapidly evolving automotive landscape.