Following the Chinese government's moves to ban excessive spending, FAW-Volkswagen announced wide-ranging plans to enhance its local Audi product portfolio, sales network and services. [Provided to China Daily]

No longer the 'govt car', it now looks to youthful elite

FAW-Volkswagen has begun a multifaceted, wide-ranging program to consolidate Audi's top position in China's premium vehicle market, said a senior sales manager at the joint venture.

The "future-oriented" program is designed to enhance products, customer experience, the sales network and brand recognition, Ge Shuwen, deputy head of Audi's sales division at FAW-Volkswagen, said during the company's annual press conference in late January.

According to statistics from the automaker's sales division, Audi's sales hit a record high of 488,488 units in 2013, a 21.2 percent rise from the previous year and 126,000 more than its nearest rival.

Calling the new campaign "a top priority" in Audi's future work, Ge said it is the result of the joint venture's careful consideration of China's premium market, including customer demands and competition.

"We will ensure the program is effectively implemented to bring Chinese customers a much better brand experience and fulfill our mission of delighting them," said Ge at the event.

The program is part of a leadership strategy unveiled in early 2013 to reach Audi's goal of selling 2 million vehicles globally in 2020 and become the largest premium automaker by sales worldwide.

According to the program, FAW-Volkswagen Audi among others will roll out more sporty and fashionable models and put more effort in developing or introducing hybrid and electric models in China.

In addition to two new members of the A3 series produced at FAW-Volkswagen's plant in Foshan, Guangdong province, the joint venture plans to launch three other new models and 12 updated versions this year, said Ge.

'Thinkers and leaders'

The program defines Audi's target customers as "thinkers, creators and leaders", a great percentage of them low-profile, practical, innovative and successful young people, said Ge.

The new customer profile is part of an effort to shake off the brand's image of a bureaucrat's car. Audi once accounted for a large percentage of Chinese government vehicles before it was removed from the procurement list in 2012.

"We used to focus on traditional business clients, but now more and more of our customers are young, promising elites," said Ge.

He also compared the program with efforts by its main rivals Mercedes-Benz and BMW.

While admitting those brands evoke more luxury in the minds of customers, Ge noted they are associated with either the past or the present, while Audi is future-oriented.

The new program also plans to update Audi's network of 350 full-service dealers. Ge said the existing shiny showrooms are somewhat "cold" compared with rival brands, so the company plans to turn them into a place offering more engaging customer experiences.

"One visit is enough for a customer to buy a car but it takes them four visits to maintain or repair their cars each year, our statistics show. So providing good service and delighting them should be a starting point for us to open new full-service stores," said Ge, adding that there will be 700 full-service Audi outlets across the country by 2020.

The program also highlights social responsibility. "It is the ultimate goal - a successful company should be good for society, the future and the environment," said Ge.

Performance in 2013

In addition to the new brand program, the joint venture also released a report on its performance in 2013.

Zhang Pijie, general manager of FAW-Volkswagen, said "under the complicated economic situation and market background, FAW-Volkswagen Audi responded calmly, hitting new records in various aspects and achieving high-quality and strong growth".

The sales figure of 488,488 units in 2013 increased Audi's market share to 35 percent, maintaining its leading position in China's premium car market.

Among the models, the A6L created a new annual sales record of 153,163 units. It was followed by the A4L, whose sales in China grew by 20 percent to 120,450 units.

The joint venture set up 55 full-service stores in 2013 while its training sessions on sales grew by 35 percent and service training courses rose by 20 percent, according to its sales division.

The report said the brand image of FAW-Volkswagen Audi has been steadily improving, with a survey by a third-party agency showing the joint venture is at the forefront of domestic premium cars in the categories of brand recognition, overall image, design style and dignity.

The brand also topped JD Power's China's satisfaction survey and for customer satisfaction among premium car brands in 2013. It was the 13th consecutive year that the brand took home the accolade.