Audi doubts Chinese brands’ ability to serve customers
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Audi Australia said a focus on customer service will help its vehicles stand out from the “wave” of new brands flooding the market.
“This is the beginning of a transition. There are a lot of cars coming, there are a lot of Chinese manufacturers coming,” said Audi Australia CEO Jeff Mannering. Car expert.
“It’s very dynamic. What happens in the next five years, you’re going to have a flood of $40,000 to $75,000 [cars]… Technically it’s volume.
“There are some high-end manufacturers that are a little more expensive than that. The issue with the current regulation is to put it under the Additional Benefit and LCT… that also comes into play.
“I think every new competitor in the market is a threat in one way or another, whether it’s price or in some way, forcing customers to lower their prices to another level.“
Mr Mannering doubts whether some of these brands offer the same level of service and support as his company.
“If something happens to the vehicle, if there’s a recall or you have to service it, where is the infrastructure to do that?he said
“I think you still have to remember that some of the traditional manufacturers have been around for a while, there are some big manufacturers, [they] have the infrastructure behind their brand.“
He argues that some of these brands will “put cars on the market” and while they may offer good cars, they won’t be able to deliver the same ownership experience as Audi.
“Honestly, I believe every car on the market is very subjective but there may be some bad cars but everything else is pretty good,he said
“The designs are beautiful… people buy them, they like them, but I think the big difference in the future from now on is going to be the experience behind what I pay for. The experience of ownership.
“And that’s a big focus for us around the world and we spend a lot of time and effort on our dealers and our customers.“
Additionally, Mr Mannering said he believes the dealer network will be impacted by the influx of new brands entering our market.
“I think with a lot of [brands] is coming, it puts pressure on everyone,he said
“This puts pressure on the retail network because they are acquiring brands and it is a profit issue because maybe the margins – I don’t know what their margins are, but I can assume they are not big.“
While Chinese brands have traditionally stuck to the lower end of the market, some have recently moved upmarket, putting them on a collision course with Audi.
New GWM Tank 500 The top-of-the-line off-roader, for example, starts at $73,990. MG will surpass that price with its Cyberster electric convertible, which is expected to cost over $100,000.
In addition to the budget brands with increasingly premium ambitions, there are brands like Zeekr that are pitching themselves as more premium products.
Zeekr will offer a slightly smaller alternative to Audi Q4 e-tron with it X cross; The company’s 7X SUV is also shaping up as a Q6 e-tron competitor.