Audi revises China sales target as stock market rout curtails demand
Audi AG has abandoned a target to sell 600,000 light vehicles this year in China, its biggest market, as the country's stock market rout saps demand for luxury vehicles, two people familiar with the company's plans said.
The German carmaker will provide an update on the market situation when it announces first-half results on July 30, the sources said. Audi's Chinese sales rose 1.9 percent to 273,853 vehicles in the first six months, but demand weakened noticeably in June, when Audi sales fell 5.8 percent.
"We're monitoring the market very closely and anticipate further growth in the mid- and long term," the Ingolstadt, Germany-based unit of Volkswagen AG said in response to questions.
In April, Audi executives predicted that annual sales, which hit 578,932 cars last year, were poised to reach the 600,000 mark in 2015. Since then, China's auto market has sputtered as economic growth slowed and a stock market in free-fall spooked consumers.
Audi is China's best-selling luxury carmaker, while BMW and Mercedes-Benz are the second and third best-selling brands. Last month, BMW sales slipped 0.1 percent, while Mercedes deliveries jumped 39 percent.
Mercedes said it still plans to deliver more than 300,000 light vehicles in China this year, as new products help draw customers to the brand. Mercedes pricing is stronger than that of its competitors in China, the Daimler AG unit said in a statement.
BMW adjusting
BMW has "moderately" adjusted the expansion plan at its plants in Shenyang as the Chinese market is "normalizing," the Munich-based company said. "We will continue to grow our production volume over the base of 2014 but slowing down the speed of growth."
BMW already cut prices on some models in April, reducing production to prevent a buildup of unsold cars.
The country's auto market has been the key growth driver for luxury-car makers in recent years. Vehicle sales will probably rise at their slowest pace in four years, the China Association of Automobile Manufacturers said Friday.
"We're monitoring the market very closely and anticipate further growth in the mid- and long term," the Ingolstadt, Germany-based unit of Volkswagen AG said in response to questions.
In April, Audi executives predicted that annual sales, which hit 578,932 cars last year, were poised to reach the 600,000 mark in 2015. Since then, China's auto market has sputtered as economic growth slowed and a stock market in free-fall spooked consumers.
Audi is China's best-selling luxury carmaker, while BMW and Mercedes-Benz are the second and third best-selling brands. Last month, BMW sales slipped 0.1 percent, while Mercedes deliveries jumped 39 percent.
Mercedes said it still plans to deliver more than 300,000 light vehicles in China this year, as new products help draw customers to the brand. Mercedes pricing is stronger than that of its competitors in China, the Daimler AG unit said in a statement.
BMW adjusting
BMW has "moderately" adjusted the expansion plan at its plants in Shenyang as the Chinese market is "normalizing," the Munich-based company said. "We will continue to grow our production volume over the base of 2014 but slowing down the speed of growth."
BMW already cut prices on some models in April, reducing production to prevent a buildup of unsold cars.
The country's auto market has been the key growth driver for luxury-car makers in recent years. Vehicle sales will probably rise at their slowest pace in four years, the China Association of Automobile Manufacturers said Friday.
