Why Audi says Australia's unique market means going for loyalty is more important than volume as it looks to duke it out with Mercedes and BMW for number one luxury brand position

Audi is having a bumper year in Australia, with the German carmaker enjoying a significant year-on-year sales jump.

But the brand's local boss, Jeff Mannering, says customer loyalty is more important than outright sales volume.

“It’s not our goal to be number one,” he said. “We need to perform well across all the segments. It’s been great in some of those segments - C segment [mid-size] SUV we’ve significantly closed the gap - I’ll take those numbers over last year, but then it was a supply issue," he told CarsGuide at the launch of the updated RS6 and RS7.

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Audi has jumped 31.6 per cent up year to date, moving 15,546 units so far in 2023 putting it closer to its key luxury segment rivals. In number one position is BMW, which has moved 21,510 units so far this year, with Mercedes-Benz Cars in number two position, having sold 20,273 units. BMW is up seven per cent, while Mercedes is down 12.9 per cent for the year.

“A lot of other manufacturers are also up this year [thanks to supply issues clearing]. Do we want to be number one? I think it will just happen naturally by evolution. If we can get the product right, get the experience right, people will stay with the brand.

“You need to get loyalty right because in Australia people aren’t afraid to try different cars because here we have maybe the most brands anywhere in the world. You have to have different strategies to keep your customer. That’s why the brand experience and the dealer experience are extremely important - we can talk about different sales channels [like online vs in-person at a dealer] - are they right? Are they wrong? But it’s the experience that matters. I certainly wouldn’t want to pick up my car in a warehouse.”

Audi sales has jumped 31.6 per cent up year to date.

The thinly-veiled swipe at Tesla’s online sales strategy comes as Audi looks to amend how late it is to the mainstream EV game. Its Q4 e-tron mid-size SUV is finally due in Q3 of 2024 and in the meantime it’s not just Tesla that poses a threat; both Volvo and Genesis have made significant strides in the last two years off the back of their popular electric offerings.

“Of course [these brands] are a threat” Mannering continued, “It’s more to do with a portfolio issue than a performance issue. Our cars have had a few birthdays now, but over the next 24 to 36 months we’ll have a big refresh. There will be new derivatives of old cars and some great new models. If they’re still catching us then I’ll be worried, but for now we just have to ride the wave.”

Elsewhere, Audi continues to invest in its ‘Audi Experience’ program where customers, inside of the warranty period, can sign up for unique events hosted by the brand. These include food and beverage experiences which the brand leans on its ambassadors for, as well as track days under the ‘Audi Drive Experience’ brand, model education sessions across both in-person and virtual mediums.

Audi has moved 15,546 units so far in 2023 putting it closer to its key luxury segment rivals.

It is an Australia-specific initiative that the local executives said was “highly regarded in Ingolstadt.” In particular, the Drive Experiences, which were open to non-owners on an invite basis have a “high conversion rate.” According to the brand its experience programs have 40,000 engaged users which have to opt-in to the program - it’s not automatic.

On the topic of product, the Q4 e-tron will be joined by the larger Q6 e-tron in the coming years, giving the brand an electric offering on either side of its top-selling Q5 combustion SUV. Mannering also mentioned a “B segment” compact battery electric car will also arrive in around 24 months - likely the premium marque’s spin on the Volkswagen ID.3.

Meanwhile rivals charge on electrifying their ranges. BMW already offers the iX1, iX3, i4, and iX. Mercedes offers an EQA, EQB, EQC, EQE, and EQS, while Volvo has committed to going fully electric in Australia early, by 2026. Over half of its popular and segment-leading XC40 volume is already electric.

Audi has said, globally, it will stop research and development on new ICE powertrains by 2026, with its last combustion engine to be produced in 2033. This gives the brand the latitude to have one more full generation with combustion vehicles before the plug is properly pulled next decade.