Audi looks to secure premium car leader: Interview

Qestion: In 2012, taking China and US as examples, China grew at the rate of 4 percent while US 14 percent. In the coming years, the growth in other mature countries, including some emerging countries, may overtake China. Will the change in other countries have an impact on Audi's 2020 blueprint to number one globally in sales?

Dominique Boesch: The 4 percent growth in China is calculated by the entire vehicle market basis. It calculates commercial vehicles, engineering vehicles and passenger vehicles. The light commercial vehicles market in the US may indeed grow very rapidly, but Audi focuses on the passenger vehicle market. What we care most about is the performance of the premium car market. No doubt that China has a huge potential in the segmented market of premium passenger cars. Other emerging markets indeed grow rapidly, but on the whole, they cannot compare with the Chinese market. So it is hard to say what the growth rate will be by 2015. Nevertheless, China will continue to be Audi's most significant market across the world.

Q: Audi's sales figure has remained in the number one place among luxury cars, but the brand value kept the second position. How will you improve?

Boesch: We will take several measures to further improve the brand value. First, we will improve our products. Second, we will organize a series of activities to let our customers experience the quality embedded in our brand. Third, we will let customers see the value and honor of our brand from various aspects. Briefly speaking, we will demonstrate Audi's inherent value from product design, customer experience, advertisement, activities and other aspects.

Q: Do you think the growth rate of the premium car market will change in 2013 compared with 2012? How will Audi respond to this change?

Boesch: There is no doubt that the premium car market will continue to grow in 2013. But the growth will have a big change. The 60 percent growth is not likely to happen. We estimate that the growth rate of the overall premium car market will reach 20 percent this year. Audi will continue to lead the overall premium car market.

Q: How does Audi guarantee the profits of the dealers operating in Audi World?

Boesch: We have made a market analysis on various aspects of Audi World, including the choice of the location. So it is a project through careful consideration. We have followed the principle of stable, healthy and sustainable development for a long time concerning the independent improvement of the dealer network. Audi World won't be an exception. The project will achieve a comprehensive effect, helping our dealer network make further improvements.

Q: Audi's sales will reach 700,000 units by 2015. Do you think the component of the premium car market will be more diversified?

Boesch: There is no doubt that the premium car market will further expand. The solid premium car makers will further consolidate their leading positions. Domestic vehicles will occupy increasingly important positions in the coming period.

Q: The prices of the premium cars declined sharply in 2012. Will Audi expand its leading edge in this situation?

Boesch: It was tough in 2012, but it also showed the direction of the market prospect. It is crucial to maintain a stable price system according to this market trend.

Q: The output capacity of the overall premium car market will reach 2.38 million by 2015. Will the price of the premium cars see a sharp decline in three years? Will the consumer group be remarkably different?

Boesch: I have confidence that we will maintain and further expand FAW-VW Audi's leading position in China's premium car market. I don't think the price of the premium car market will see a big change, but there must be many new products entering this market. The segmentation will be more complicated and more niche, so that varied demands can be met. But we will not see a fundamental change in the price of the overall premium car market, especially in the pricing logic.