Audi Losing Market Share in China as Youth Reject Communist Government Image

Audi, long the automaker of choice for Chinese bureaucrats, has found itself suddenly losing to rivals, BMW and Mercedes-Benz. As the nation creates a new generation of wealthy young buyers, Audi’s market share in China has fallen by 25% in less than two years.

Mercedes market share is now at 22 percent from 16 percent in 2009. BMW’s share grew to 25 percent to 21 percent. Finally, Audi have fallen from their previous 40 percent to a current 30 percent.

According to Shaun Rein, Shanghai-based managing director of China Market Research Group, “Audi is seen as being a bit old-fashioned because of its association as being a government car. Wealthy consumers today want something sexier, more indulgent, which is why BMW and Mercedes have done well… Ten years ago, everyone wanted to be in government as that was seen as the ticket to wealth. Today, the new wealthy consumer doesn’t want to be associated with officialdom.”


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quizz - 11/1/2011 11:11:01 PM

0 Boost

Why? They just want to buy the best, and so they do so.

VISO - 11/2/2011 2:58:19 PM

-1 Boost

As a quick note, the article is a bit misleading. Of course Audi's market share has dropped as Audi was the first and only luxury automaker in China for a long time. So when other premium makers entered the market, just be diversity, marketshare will decrease. However, sales volume has increased. Though Ingolstadt's market share may have dropped 25%, its sales have actually increased 29% more in the first 9 months of 2011 than it did in 2010 (243,631 units). Comparedly, Mercedes and BMW both sold 139,400 and 171,342 units respectively. So as usual, the competition is good for everyone.