Audi competing with China on plug-in hybrid tech, not brands
While Audi Australia believes it is going up against “a much broader amount of competitors” than ever before, it considers advancements in tech to be more competitive than any particular brand.
Audi Australia national product manager Matthew Dale has previously said plug-in hybrids (PHEVs) are a “big focus” for the brand in ensuring it maintains breadth across its range under incoming New Vehicle Efficiency Standards (NVES), set to come into effect on January 1, 2025.
But in the context of pricing and value, PHEVs from Chinese brands like GWM are expected to give some well-established manufacturers a run for their money. That includes Audi, which has long been positioned as a higher-end, premium brand.
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Camera IconQ5 Credit: CarExpert
Mr Dale says while Audi’s traditional competitors are “the three Germans”, it’s important for the brand to consider all other brands when weighing up future models.
“We look at what everyone provides to the Australian consumer, not just in the premium segments, but looking at mass-market as well and what those competitors are bringing – along with new competitors to position our product accordingly to our customers,” he said.
“That’s where we’re positioned with Audi, we’re offering value in each one of the segments within the premium range. The team’s constantly looking at ‘how do we stand behind what we preach’ … advancing through technologies, and providing those technologies to the market within each segment.”
While competition from such Chinese manufacturers has sparked discussions about the future potential of brands like GWM, Audi says it’s more interested in the competition from the development of PHEV technology in general.
Audi currently offers just two PHEVs in Australia: the Q5 and Q8. While it hasn’t confirmed plans to introduce PHEVs to other model lines locally, those two models are priced at upwards of $105,000 and $150,000 respectively.
Camera IconTank 500 PHEV Credit: CarExpert
GWM, meanwhile, has outlined plans to bring a PHEV version of its Tank 500 to Australia next year. While pricing is yet to be confirmed, the brand has suggested the added cost over a non-PHEV car could “range anywhere from $6000 to $15,000”.
In the case of the Tank 500 – which in its most expensive Ultra Hybrid variant is priced at $73,900 drive-away – that suggestion could mean it rings up at somewhere around $90,000; significantly below both the Q5 and Q8 PHEV SUVs.
When asked about whether Audi considers brands like GWM to be a competitor for PHEV vehicles, Mr Dale stopped short of denying such considerations but outlined that any advancements made in PHEV tech would be the focus for competition.
“We consider the technology competitive. Technology is moving at a rapid rate, especially in electrification, and that’s where we consider any competitor to moving that technology forward,” Mr Dale said.
“We consider that technology to be a competitor more than necessarily a brand.”
Camera IconAudi product planning manager Peter Strudwicke Credit: CarExpert
Audi Australia product planning manager Peter Strudwicke says in the context of new competition, the brand needs to remember its positioning and stand by its premium orientation.
“We look at it lots of different ways, but we’re also a premium brand so we have to offer a premium experience for a customers as well,” he said.
“You’re buying into an entire lifestyle around Audi that isn’t just about cars.
“These cars are an emotional choice, if you’re making purely rational choices you would buy a less expensive car that did the A to B, but we’re about more than that.”
MORE: GWM plans PHEV onslaught for Australia, including a uteMORE: Plug-in hybrids a big part of Audi Australia’s future plans
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