Pioneering premium marque continues to innovate in Chinese market

Audi's slogan Vorsprung durch Technik, which means Progress through Technology in English, isn't just about technology itself.

The tireless conquest for a better self it implies is equally crucial, as shown by the German premium carmaker's road to success in its largest market, China, over the past three decades.

Thanks to its "In China, For China" strategy, Audi has delivered 7 million vehicles bearing the four-ring logo to Chinese customers, sitting atop the list of premium marques available in the country.

This is one of many firsts Audi has taken home in China. It was the first premium carmaker to enter the Chinese market and the first to produce vehicles locally, with the Audi 100 rolling off the assembly line in Changchun, Jilin province, in 1988.

The model, together with the Audi 200, heralded the first chapter of the German carmaker's exciting success story in the country that later became the world's largest vehicle market.

The year 1999 marked another milestone for Audi and beyond. The observant marque introduced a model with an extended wheelbase, the Audi A6 L, to offer more legroom for backseat passengers.

The novelty was designed specifically for the Chinese market, as Chinese customers value spaciousness. In 2009, the Audi A4 L was launched in the market, as the first long-wheelbase version of a premium car in the upper-midsize class.

The extended wheelbase later became almost a must for premium carmakers and even volume brands selling vehicles in China.

Its innovations are not limited to products. In 2000, the first Audi showroom was established in Beijing and Audi introduced the global-standard service system into China, also a pioneer for China's auto market.

In 2013, Audi established its Chinese R&D center. The facility develops solutions for the premium segment in such fields as new energy vehicles, autonomous driving, connectivity, digitalization and design.

Audi China's R&D staff work to ensure that innovations and technology trends from Asia flow into the carmaker's global concept products, thus deepening its commitment to "In China, For China".

This dedication, underlined by its products and services, has helped promote Audi's progress in China.

"For the past 33 years, Vorsprung has been the core spirit of Audi's development in China, and we have been the pioneer in the premium car market," said Werner Eichhorn, president of Audi China. "We will continue to make more breakthroughs and provide top-quality products and services to our valued Chinese customers."

It took 22 years, from 1988 to 2010, for the marque to sell 1 million vehicles in the country, but their sales grew exponentially from 2010 to 2021 to total 7 million units.

Audi has charted the course for the brand's golden decade from this new starting point.

A pillar of the strategy is its governance structure. Audi CEO Markus Duesmann is the only top executive of a premium carmaker to oversee its China business.

He is only the second to do so in the auto industry. The first was Herbert Diess, CEO of Audi's parent company Volkswagen AG.

This governance structure allows executives in Germany to learn faster about developments in the Chinese market and speed up decision-making. It also aids teamwork within the Volkswagen Group, according to the carmaker.

Another pillar is its partners, FAW and SAIC. "Our strong partnerships are the cornerstones of Audi's success in China and together we are bringing our 'Golden Decade' strategy to life," said Eichhorn.

Audi has been producing models with FAW since 1988. This year, their joint venture, FAW-Volkswagen, will produce 12 Audi models.

Another cooperation enterprise with FAW is scheduled to produce electric cars based on the PPE platform Audi co-developed with Porsche from 2024.

SAIC has unveiled its first Audi model, the A7 L, which is expected to hit the market in 2022.

Audi estimates that annual sales of premium vehicles could reach 4 to 5 million units by 2030, of which 40 to 50 percent will be new energy vehicles.

The carmaker expects to sell 1 million vehicles a year by 2025 at the latest in China, the world's most important premium auto market.

In the same year, it will have at least five locally made electric models. Globally, the brand aims to have more than 20 e-models in its lineup.

Beyond its electrification transformation, Audi has partnered with technology giants including Alibaba and Tencent to tailor better digital experiences for its local customers, who on average are almost 20 years younger than those in Europe.

Audi is also doing its part to support China in achieving its goal to reach peak CO2 emissions before 2030 and achieve carbon neutrality by 2060.

Together with its two joint ventures, Audi said it is continually increasing energy efficiency in the context of energy management and expanding the supply of renewable energies at production sites.

It is also purchasing renewable energies and offsetting currently unavoidable CO2 emissions through compensation projects.