Audi Readies 10 New SUV Models for China Market

Audi AG aims to bolster sales in China by adding 10 new SUV/crossover models by 2022.

SUVs already account for more than 40% of Audi deliveries in the country, which generates about one-third of the brand’s global sales volume, The Nikkei says.

Last year Audi’s growth in China slowed to 1% (597,000 units), causing the marque to lose its leadership in the luxury segment. Rival Daimler AG’s Mercedes-Benz brand surged 27% to take the lead, followed by second-place BMW, whose deliveries jumped 15%.

Analysts blame the slump on Audi’s dispute with partner FAW Group over the German carmaker’s plan to launch a second carmaking venture by 2022 with Shanghai Automotive Industry Group, a state-owned rival. The clash sparked a boycott by Audi dealers worried about over expansion and diluted per-outlet sales volumes.

The FAW joint venture will produce seven of the 10 new crossovers, including four all-electric models. Audi also agreed to establish two new joint ventures with FAW, one of which will handle vehicle sales.