Audi’s rebranding in China signals larger changes in the auto industry

It is also a reorganization for the German carmaker, which entered China in the late 1980s and, thanks to a partnership with local manufacturer FAW, became the first global premium brand to adapt its cars to the Chinese market. For many years, Audi was synonymous with foreign luxury and later became the world’s standard car Party elite.

But the rapid rise of Chinese automakers, supported by generous state support and the emergence of a new middle class, has global automakers trying to catch up. Mitsubishi Production stopped in China last year; Hyundai and Ford have it closed or Reduced operations In factories. This month, GM reported that its China business, which operates jointly with several Chinese automakers, saw sales fall nearly 20 percent this year. GM He said It will restructure its business in the country, writing off assets worth $5 billion in the process.

Volkswagen Group, which sells Audi as well as Porsche, Bentley, Skoda and Lamborghini in China, saw a 10 percent decline in cars sold in the country this year. the The decline was responsibleThis is partly due to a decline in global sales that led to lower profits in the latest quarter. Volkswagen said Last week It will sell a factory in Xinjiang.

However, as Ahuja points out, Audi has sold more than 9 million cars in China. He wants to stay in the country. Audi – no rings! – She is trying to do this. (Perhaps confusingly, the automaker will continue to sell cars in China under the heritage “Four Rings” brand as well.) “I don’t want to touch that legacy,” Ahuja says. “I want to develop it further.”

The brand tweaking also points to deeper dynamics in the Chinese market, as global automakers beyond Audi (or Audi) scramble to maintain a foothold among a new generation of car buyers as Chinese-made cars rise at home and abroad. This indicates the changing dynamics in consumer preferences that have already emerged on roads outside the Asian country.

In 2019, BMW was defending its decision to expand on the kidney grilles for the 7 Series. At the time, BMW Group Design Director Adrian von Hooydonk suggested that one of the reasons behind the huge, imposing front fascias was the “younger and more extroverted” Chinese customer. He also went on to say that The networks will shrink again “I hear from (BMW’s design center in Shanghai) that design tastes in China are evolving rapidly…they are increasingly demanding precision.”

Brand translations

First, Audi’s decision to cancel the four rings is a practical matter. Logos like the four Audi rings are “very difficult to defend in China, from an intellectual property perspective,” says Jeff Li, co-founder and partner at Northern Light Venture Capital, an early-stage Chinese company with offices in Silicon Valley. It’s easy to use five rings or three rings, and there are hundreds of Chinese automakers who are confused. It helps that “AUDI” is easy to pronounce for Chinese speakers.

Old and new.

Courtesy of Audi