Audi losing market share in China, 25% loss in the past 2 years
Everyone keeps talking about the great Chinese economy. Well, it has not been so great for Audi in the past couple of years as 25% of their market share has eroded. Why? BMW and Mercedes are expanding and taking what was once Audi's momentum with them. Mercedes is up from 16% in 2009 to 22% in 2011. BMW is up to 25% from 21% in a similar window. The managing director of China Market Research Group can explain this a bit better, “Audi is seen as being a bit old-fashioned because of its association as being a government car. Wealthy consumers today want something sexier, more indulgent, which is why BMW and Mercedes have done well. Ten years ago, everyone wanted to be in government as that was seen as the ticket to wealth. Today, the new wealthy consumer doesn’t want to be associated with officialdom.”
Kind of weird right? Completely different from the US image. 2593 Analytics Inc explains, " “Audi has a slightly schizophrenic image. In China, its sedans are government cars and are considered stodgy. In the U.S. and Europe, Audi is edgy, stylish, and a smarter buy than a Mercedes or a BMW.”
Old and stodgy? Seems Audi has acquired in China some negative connotations that Cadillac has had to fight off in the USA.