Audi Australia says its focus on customer service will help its vehicles stand out against a “flood” of new brands to our market.
“It’s the beginning of a transition. There’s a lot of cars coming, there’s a lot of Chinese manufacturers coming,” Audi Australia CEO Jeff Mannering told CarExpert.
“It’s very dynamic. What happens in the next five years, you’re going to have a flood of $40-75,000 [cars]… That’s technically where the volume is.
“There’s some premium manufacturers that are a little bit more expensive than that. The topic with the current rule is get it under the Fringe Benefits and the LCT… that also comes into play.
“I think every new competitor in the market is a threat in some way, shape or form, whether it’s the price position and it brings customers down to a different price level.”
Mr Mannering cast doubt on whether some of these brands are going to be offer the same level of service and support as his company.
“If something happened to the car, if there was a recall or you had to do a service, where’s the infrastructure to be able to do it?” he said.
“I think you still have to always remember that some of the traditional manufacturers have been around for a while, there’s some big ones, [they] have an infrastructure behind their brand.”
He argued some of these brands will be “pumping cars in” and, while they may offer decent vehicles, they won’t be able to offer the same ownership experience as Audi.
“Honestly, I believe every car that’s in the market, it’s very subjective but there’s probably some bad cars but everything is pretty good,” he said.
“The designs are good… people buy them, they like them, but I think a big differentiator in the future from now is going to be what’s the experience behind what I’m paying for. The ownership experience.
“And it’s a big focus worldwide for us, and we’re spending a lot of time and effort with the dealers, with the customers.”
Additionally, Mr Mannering says he believes dealer networks will be impacted by the surge of new brands to our market.
“I think with so many [brands] coming in, it’s putting a strain on everybody,” he said.
“It’s putting a strain on the retail network because they’re grabbing brands and it’s a profitability issue because maybe the margins – I don’t know what their margins are, but I could suggest they’re not great.”
While Chinese brands have in the past stuck to the lower end of the market, some have been heading further upmarket of late. That’s sending them hurtling towards Audi’s turf.
GWM’s new Tank 500 off-roader, for example, tops out at $73,990 drive-away. MG will blow past that price point with its electric Cyberster convertible, set to wear a price tag north of $100,000.
In addition to these budget brands with increasingly upmarket aspirations, there are brands like Zeekr coming that are pitching themselves as more premium offerings.
Zeekr will offer a slightly smaller alternative to Audi’s Q4 e-tron with its X crossover; its 7X SUV is also shaping as a Q6 e-tron rival.
