Audi lost ground to its competitors and much of its own sales last year. Now dealers have had enough – the cars are too expensive.
Audi dealers in Germany are in revolt. They are experiencing a significant drop in sales, and they believe that the high prices, especially for electric cars, are to blame for the negative development. This dissatisfaction has created a stir in the automotive industry and raises questions about Audi's future strategy.
The chairman of the association of VW and Audi dealers in Germany, Alexander Sauer-Wagner, has now gone to the media with his concerns about the situation. He represents 2,000 dealers and points out that the massive drop in sales of Audi cars has been going on for a long time.
"We have been experiencing a massive decline in sales for the Audi brand for a long time," he told Der Spiegel .
The price of many Audi models now exceeds 100,000 euros when optional equipment is added. This has led some German buyers to turn their backs on Audi and instead choose cars from sister brand Skoda. Skoda cars are based on the same platforms as Audi, but are offered at a lower price.
Dealers are seeing customers switching from the Audi A6 to the Skoda Superb. They are looking for cheaper models, but Audi is focusing on more expensive variants with higher horsepower.
– We lack a cheaper base model with a diesel engine, instead Audi primarily offers more expensive models with a lot of horsepower, the dealer tells Spiegel.
Audi has chosen to invest in Formula 1 to strengthen the brand's image. This venture is however costly, although Audi has already sold large parts of what is currently Sauber to the Qatari sovereign wealth fund to finance the project.
The chairman of the dealer association is doubtful whether the Formula 1 investment can reverse the negative sales trend.
– It is indeed a powerful marketing tool. But in the next few years, Formula 1 will probably have only a small impact on Audi's sales in Germany.
Audi's future in the German market depends on whether they can address dealer concerns and adapt to customer needs. However, the brand has announced several price increases. Read more about it here .
The question is whether Audi will change its pricing strategy and focus on more affordable models, or whether they will continue the current course with a focus on exclusivity and high-tech solutions.
Whichever path Audi chooses, it will have implications for both dealers and customers in the future.
It will be exciting to follow the development and see how Audi navigates the competitive car market.
Dealer criticism and falling sales figures suggest that Audi faces a challenge: it must find a balance between maintaining its image as a premium brand while offering cars that are accessible to a wider customer base.
