In July, two moments for FAW Audi are worth noting.
First, FAW Audi announced its cumulative sales have surpassed 9 million units, making it the first luxury brand to reach this milestone in the Chinese market.
Second, Li Fenggang, who was promoted to Executive Deputy General Manager of FAW Audi Sales Co., Ltd. last October, embraced the short video era with a fervor typical of a Tsinghua University graduate and a man of science. He positioned himself as the "i-marketing officer," launching video accounts on platforms like WeChat and Douyin where he shares Audi's stories and establishes direct communication channels with users. He thereby became the first brand leader in the luxury segment to open social media accounts.
These two moments for FAW Audi also represent two dimensions for its next steps in China: one signifies heritage, and the other represents innovation.
Amid the foundation of inheritance and breakthroughs in innovation, FAW Audi's new product offensive is set to unfold.
The all-new Audi A5 is about to be introduced as a locally produced model
"Beginning next year, based on the new PPC and PPE platforms, FAW Audi will successively launch key products such as the all-new Audi A5L, Q5L, Q6L e-tron, and A6L e-tron, while also importing the Audi A5 Avant, S5, and S5 Avant from the Audi family."
On August 13, Li Fenggang disclosed to reporters in Changchun that starting in 2025, FAW Audi will enter a concentrated rollout phase for a new generation of products, introducing new models in both traditional fuel and new energy segments.
Li Fenggang, Executive Deputy General Manager of FAW Audi Sales Co., Ltd.
Leading the charge is of course the all-new A5L.
The all-new Audi A5 is the next model that FAW Audi will begin producing.
The all-new Audi A5 has already been unveiled overseas, and once introduced by FAW Audi, it will be extended and named "A5L": the new A5L will be nearly 5 meters long with a wheelbase close to 3 meters, aligning it with the specifications for a C-segment vehicle, with a focus on sporty positioning to compete with the standard wheelbase version of the BMW 5 Series.
European version of the A5
It is understood that as the first product built on the high-end fuel vehicle platform PPC, the all-new Audi A5L will undergo upgrades tailored to the Chinese market, meeting the diverse needs of users for business travel and family use.
Currently, detailed information about this new car is still under wraps, but from the release cadence, the all-new FAW Audi A5L is expected to make its debut at the Guangzhou Auto Show.
In China, the A6L will be a "duel of fuel and electricity"
Unlike the uncertainty surrounding the future of the fuel version of the A4, a heavyweight product in the B-segment market, after the domestic production of the all-new A5L, the next generation of the fuel version of the A6L has been confirmed to retain its name.
This year marks the 115th anniversary of the Audi brand and the 36th year of cooperation between FAW and Audi.
In 1988, Audi began its partnership with China FAW, becoming the first luxury car brand to enter China and also the first to produce cars locally, with the initial model being the third generation C-class sedan, named the Audi 100. In 1999, FAW Audi introduced the fifth generation C-class sedan, officially naming it the Audi A6, pioneering the trend of "long wheelbase" luxury vehicles.
Over the past 36 years, the Audi A6L has accumulated a series of classic moments, embodying the sentiments and dreams of generations of Chinese consumers. Driven by the Audi A6L, the cumulative sales of the Audi A6 family in the Chinese market have reached nearly 3 million units, making it the best-selling model in China's luxury car market.
Additionally, in Chinese culture, the number "6" symbolizes auspiciousness and prosperity, carrying significant cultural value. The name Audi A6L has long been ingrained in the public consciousness, and the A6L has clearly become a brand emblem for FAW Audi, shaping the market for C-class executive sedans in China. Therefore, the next generation, or the ninth generation of C-class sedans, will still retain the "A6L" legendary name. This reflects FAW Audi's deep respect for the Chinese market and sincere affection for Chinese vehicle owners.
While continuing to maintain core advantages in the fuel vehicle sector, FAW Audi's new energy products will also consistently emerge.
Michael Arndt, General Manager of FAW Audi Sales Co., Ltd., told reporters that Audi plans to launch over 20 models in 2024 and 2025 to expand and update its product lineup, including electric vehicles, plug-in hybrid vehicles, and next-generation highly efficient internal combustion engine vehicles.
Michael Arndt, General Manager of FAW Audi Sales Co., Ltd.
According to previous plans, FAW Audi's plug-in hybrid models are expected to debut in 2026, and it is reported that the hybrid models will be built on the new generation PPC platform. He also made it clear that FAW Audi will be responsible for the sales of Audi FAW PPE platform products in China.
"In the future, the C-class ninth generation sedan introduced by FAW Audi will still be named Audi A6L. The Audi A6 e-tron electric vehicle model has already been unveiled globally, and this model will also be brought into FAW Audi's channels for sales and customer service," Li Fenggang stated. He indicated that the future A6L in China will be a "duel of fuel and electricity," combining both "gasoline" and "electric" power.
Price wars will become the norm, fuel vehicles will account for at least a third of the market
As of now, FAW Audi bears the primary responsibility for expanding Audi's sales in China.
From January to July this year, in the face of downward market pressure, FAW Audi achieved sales of nearly 350,000 vehicles, firmly establishing itself in the top luxury brand tier. In the first half of this year, FAW Audi's cumulative sales also surpassed the 9 million mark, making it the first and only luxury brand in the Chinese market to achieve this milestone.
Despite fierce competition, seven FAW Audi products ranked first in their respective market segments over the first seven months. This includes the Audi Q2L, A3 Sportback, A6L, Q4 e-tron, A5 Sportback, A4 Avant and allroad, and A6 Avant and allroad.
To respond to market changes, since taking office, Li Fenggang has undertaken comprehensive restructuring of both internal and external organizational structures. For instance, he reorganized the marketing department, centralizing user management and marketing functions that were previously scattered across various departments into the Market and User Operations Department. Internal resources were also adjusted to support the Market and User Operations Department, which has established a live streaming team that now conducts live broadcasts for 10 hours each day as standard practice.
"Currently, the competition for price wars is very intense, and this is one way for companies and brands to compete. Businesses may engage in price wars, as well as marketing contests and technological battles; the core goal is to win in competition," Li Fenggang commented.
Regarding the ongoing price war frenzy, Li Fenggang believes that the end is not yet in sight. He noted that the emergence of electric vehicles has lowered the entry barriers for the industry, leading to an influx of new entrants. If these barriers remain unchanged, the price war in the electric vehicle market is not likely to diminish and could become a norm. Audi, being part of this competitive landscape, "doesn’t just wish to compete on price, but more on systemic capabilities, product strength, and service capabilities," he stated.
Because of this, he believes Audi must first acknowledge its own strengths, saying, "Our advantage lies in over a century of expertise in core technologies such as engines, transmissions, and chassis, along with our experience in car manufacturing under 'expert thinking.' In the face of intense market competition, FAW Audi must first solidify its advantages and then address its weaknesses."
"In my judgment, ten to fifteen years from now, fuel vehicles will still account for at least 30%, resulting in a situation divided into thirds," Li Fenggang stated.