Audi has to speed up development of new models to meet a surge in demand for electric vehicles, especially in China, according to the German luxury carmaker's CEO. .
“We are reviewing our development process,” Markus Duesmann said.
The company needs new and shorter production cycles for the areas of connectivity and software. “And we are also looking more intensively at how this is done in China,” Duesmann said.
“I expect that over time we will get close to a development time of 30 months,” he added. That compares with a current time of about 48 months.
The Volkswagen subsidiary has lagged behind fellow German carmakers BMW and Mercedes-Benz in the pivot towards battery-electric vehicles (BEVs).
“In 2030, the BEV share of the premium car market should already be between 60% and 70%, depending on the region,” Duesmann said. “We have to react when a market suddenly changes so quickly.”
That shift could happen even sooner in China, but Audi's sales performance in the world's biggest car market has fallen short of expectations. The reason, Duesmann said, is “we still don't have the optimal vehicles on the market for Chinese needs”.
From January to March, Audi sold just more than 3,000 electric cars in China.
Local heavyweight BYD overtook the VW brand in the first quarter to become China's top marque with a total market share of 11%, including traditional combustion-engine cars.
Unlike BMW and Mercedes-Benz, Audi has not brought out major additions to its model range over the past two years.
The new Q6 e-tron has been delayed by behind-schedule software development.
Its release, now set for the end of the year, marks the launch of a product offensive, with Audi aiming to bring more than 20 new models onto the market by 2025, half of them powered by electric motors.
From 2026, Audi doesn't plan new combustion-engine models.
Hoping to offset disappointment in China, Duesmann said the carmaker wanted to strengthen its business in North America, tapping into a strong US car market and Washington's generous subsidies programme.
Audi's strategy “has been reinforced by the Inflation Reduction Act”, the CEO said, referring to the programme.
Audi has a plant in Mexico and is considering expansion of its production capacity in the region, perhaps at VW's site in Tennessee.
A decision on this will “definitely be made this year,” Duesmann said.
Audi boss sets sights on China in electric car catch-up
Image: Stiefel Udo ATPImages/Getty Images
Audi has to speed up development of new models to meet a surge in demand for electric vehicles, especially in China, according to the German luxury carmaker's CEO. .
“We are reviewing our development process,” Markus Duesmann said.
The company needs new and shorter production cycles for the areas of connectivity and software. “And we are also looking more intensively at how this is done in China,” Duesmann said.
“I expect that over time we will get close to a development time of 30 months,” he added. That compares with a current time of about 48 months.
The Volkswagen subsidiary has lagged behind fellow German carmakers BMW and Mercedes-Benz in the pivot towards battery-electric vehicles (BEVs).
“In 2030, the BEV share of the premium car market should already be between 60% and 70%, depending on the region,” Duesmann said. “We have to react when a market suddenly changes so quickly.”
That shift could happen even sooner in China, but Audi's sales performance in the world's biggest car market has fallen short of expectations. The reason, Duesmann said, is “we still don't have the optimal vehicles on the market for Chinese needs”.
From January to March, Audi sold just more than 3,000 electric cars in China.
Local heavyweight BYD overtook the VW brand in the first quarter to become China's top marque with a total market share of 11%, including traditional combustion-engine cars.
Unlike BMW and Mercedes-Benz, Audi has not brought out major additions to its model range over the past two years.
The new Q6 e-tron has been delayed by behind-schedule software development.
Its release, now set for the end of the year, marks the launch of a product offensive, with Audi aiming to bring more than 20 new models onto the market by 2025, half of them powered by electric motors.
From 2026, Audi doesn't plan new combustion-engine models.
Hoping to offset disappointment in China, Duesmann said the carmaker wanted to strengthen its business in North America, tapping into a strong US car market and Washington's generous subsidies programme.
Audi's strategy “has been reinforced by the Inflation Reduction Act”, the CEO said, referring to the programme.
Audi has a plant in Mexico and is considering expansion of its production capacity in the region, perhaps at VW's site in Tennessee.
A decision on this will “definitely be made this year,” Duesmann said.
MORE:
About 85% of Toyota shareholders vote to re-elect Toyoda at annual meeting
Macron to meet Elon Musk in Paris on Friday to discuss batteries
Graphene is the solution to toxic tyre chemical 6PPD, says Carbon Rivers
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos