Audi competes with China on plug-in hybrid technology, not brands

While Audi Australia believes it is facing a “larger pool of competitors” than ever before, viewing advances in technology as more competitive than any particular brand.

Audi Australia national product manager Matthew Dale previously said Plug-in hybrid vehicles (PHEVs) are a “big focus” for the brand in ensuring it maintains its wide range under the New Vehicle Efficiency Standards (NVES), which will come into effect on January 1, 2025.

But in terms of price and value, PHEVs from Chinese brands like GWM are expected to give an edge to some established manufacturers. That includes Audi, which has long been positioned as a premium, premium brand.

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Mr Dale said while Audi’s traditional competitors were the “German three”, it was important for the brand to consider all other brands when considering future models.

“We look at what people are offering to the Australian consumer, not just at the premium end but also at the mass market and what those competitors are offering – along with with new competitors to position our products relevant to our customers.” .

“That’s our position with Audi, we are bringing value to each segment in the premium segment. The team is constantly looking at ‘how do we stand behind what we preach’… evolving through technology and delivering those technologies to the market in each segment.”

While competition from Chinese manufacturers has sparked discussions about the future potential of brands such as GWM, Audi says it is more concerned about competition from technological developments PHEVs in general.

Audi currently only offers two PHEVs in Australia: Q5 And Q8. Although the company has not confirmed plans to introduce PHEV to other model lines locally, these two models are priced up to $105,000 and $150,000 respectively.

Meanwhile, GWM has outlined plans to bring one PHEV version of the company’s Tank 500 coming to Australia next year. While pricing is yet to be confirmed, the brand has suggested that the additional cost for a non-PHEV car could “range from $6,000 to $15,000”.

In the case of the Tank 500 – its most expensive Ultra Hybrid variant costs $73,900 drive-away – that suggestion would probably mean it would cost around $90,000; significantly lower than both the Q5 and Q8 PHEV SUV models.

When asked about whether Audi considered brands such as GWM as PHEV competitors, Mr. Dale did not deny such considerations but pointed out that any advances made in PHEV technology would is the focus of competition.

“We see this technology as competitive. Technology is evolving at a rapid pace, especially in the electrification sector, and that’s where we look at any competitors to develop that technology,” Mr. Dale said.

“We see that technology as a competitor rather than a brand.”

Audi Australia product planning director Peter Strudwicke said in the new competitive landscape the brand needed to remember its positioning and maintain its premium orientation.

“We look at it in many different ways, but we are also a premium brand so we also have to provide a premium experience to the customer,” he said.

“You are enjoying the whole lifestyle around Audi, not just the car.

“These cars are an emotional choice, if you make completely rational choices you will buy a cheaper car that has achieved A to B, but we do more more than that.”

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