‘Saudi market accounts for 13% of Audi’s Mideast sales’
‘Saudi market accounts for 13% of Audi’s Mideast sales’
These are highlights of the interview:
How has Audi performed in the regional GCC markets in 2017 and how is the Saudi market doing this year for Audi?
The market has been challenging this year due to the economic situation and political instability in some markets, but Audi has continued to introduce new models such as the Q2 at the beginning of the year, the A5 and S5, the TT RS and the RS 3 Sedan. In quarter three of 2017, the all-new Audi Q5 will arrive so this will have a great positive impact on our business. In terms of sales, while we are not at the levels of last year overall, models such as the A4 have seen a 15 percent increase in popularity with the new model introduction and the Audi R8, which was nominated as the Middle East Car of the Year this year, has enjoyed a 50 percent increase in sales. Saudi Arabia accounts for 13 percent of our regional sales in the Middle East, but here the A4 showed a 23 percent increase in sales due to the popularity of the sedan in the Kingdom.
Audi has revealed the e-tron series in the past few months; do you see prospects of such electric models coming to the region?
Yes, the e-tron had been a very successful range in Europe where the appetite for alternative fuel is high and where the markets are advanced in the provision of facilities to charge and service these vehicles. We see good opportunities for these models in the Middle East in the future but only when the infrastructure is advanced enough to cope with the charging requirements of such models and our dealers are equipped to handle their maintenance. Our Audi Q7 is the best-selling model here accounting for 30 percent of our sales and is followed by the luxury model A8. We are very excited to see this recently announced new model in our market next year.
What new Audi products are likely to be launched in the region in the next 12 months?
The TT RS and the RS 3 Sedan models are just arriving with our dealers now and the all-new Audi Q5 will be an exciting edition to the Audi family from September this year. We are also looking forward to the arrival of the R8 Spyder and the RS 5 at the end of the year.
Do you see a need for regional authorities to start building the necessary infrastructure for alternative energy vehicles?
We are working closely with the authorities to explore new charging opportunities for electric cars and there is also good progress on the adoption of legislation for autonomous vehicles in the future in the UAE. The challenges of an extremely hot climate mean that we have to make sure these cars are fully tested and approved to perform to the standards expected by our customers. As soon as we are certain that all of these requirements are met, we will introduce these models into the market, but we cannot put a date on that at the moment.
What are your best-selling models in the region and do you see this pattern changing in the foreseeable future?
The Q7, Q5 and Q3 make up the majority of our sales with 39 percent, followed by the A8. Our customer demands a premium car that offers sophistication, sportiness and progressive technology. The Middle East is one of the biggest markets in the world for sales of the Audi R8.
What new technologies will be included in the new Audi A8?
The new A8 is an important driver of innovation and heralds a new design era with exterior and interior styling for Audi. The new A8 has also been developed for highly automated driving (level three). In 2018, we will begin gradual volume production of the piloted driving functions.
In addition, the new A8 will feature many other innovations such as a 48-volt main vehicle electrical system, Audi AI active suspension and Audi wireless charging, to name a few. The new Audi A8 also features 41 assistance systems, which surpasses all previous totals in our product line.
Do you see a future for self-driven Audi cars in the Gulf region?
Yes, the autonomous car gives the customer what we call the “25th Hour.” It will allow people to live their lives in a new way and give them more time to work and relax. The A8 is the first car to offer level-three capabilities in the field of autonomous driving and we are encouraged to see that there is good progress in the discussions to approve legislation that allows autonomous cars to be accepted on the roads in the UAE.
With its “25th Hour” project, Audi is enabling its customers to be fully in control of how they use their time in cars. Personal preferences are the focal point of the project. The car interior adapts itself to users’ needs and desires, allowing them to enjoy optimal relaxation, spend time with family and friends without being disturbed.
Audi launches electric SUV in Tesla’s backyard, with assist from Amazon
SAN FRANCISCO: German luxury car brand Audi on Monday staged the global launch of a new electric sport utility vehicle on the home turf of rival Tesla Inc, and highlighted a deal with Amazon.com Inc. to make recharging its forthcoming e-tron models easier.
The Audi e-tron midsize SUV will be offered in the United States next year at a starting price of $75,795 before a $7,500 tax credit. It is one of a volley of electric vehicles coming from Volkswagen AG brands, as well as other European premium brands including Daimler-owned Mercedes-Benz, BMW, Volvo Cars and Jaguar Land Rover.
All aim to expand the market for premium electric vehicles and also to grab share of that market from Palo Alto, California-based Tesla, which has had the niche largely to itself.
“I want Audi to be the number-one electric vehicle seller in America over the long term,” Audi of America President Scott Keogh told Reuters in an interview on Monday.
Tesla CEO Elon Musk, who is also head of rocket company SpaceX, planned to mark the e-tron launch occasion by staging a SpaceX event in Los Angeles at roughly the same time on Monday evening as Audi’s unveiling.
Audi and parent Volkswagen are using the US launch of the e-tron SUV in mid-2019 to take aim at one obstacle to expanding electric vehicle sales — the lack of convenient ways to recharge their batteries.
Audi will partner with online retailer Amazon to sell and install home electric vehicle charging systems to buyers of the e-tron, the companies said on Monday. Amazon will deliver the hardware and hire electricians to install them through its Amazon Home Services operation.
Amazon’s partnership with Audi to provide home charging systems is the first time the online retailer has struck such a deal with an automaker, and signals a new front in Amazon’s drive to expand its reach into consumers’ homes beyond the presence of its Alexa smart speakers in living rooms and kitchens.
“We see charging installation as a very important business,” Pat Bigatel, director of Amazon Home Services, told Reuters at Audi’s launch event in San Francisco’s Bill Graham Civic Center.
Audi executives said home charging stations would cost about $1,000, depending on the home’s electrical system.
Tesla offers wall connectors for home charging at a $500 list price, and will arrange for installation, according to the company.
At the same time, Electrify America, a company funded by Volkswagen as part of its settlement of US diesel emission cheating litigation, plans to launch next year the next round of installations of public charging stations, Electrify America executives told Reuters.
Tesla has developed its own network of Supercharger charging stations with more than 11,000 chargers in North America. Electrify America plans to have 2,000 chargers installed by mid-June next year. Those will be open to any vehicle, and customers can swipe a credit card to recharge.
“We want to work with all” automotive brands, said Giovanni Palazzo, Electrify America’s chief executive.
Lifting the Curtain
Audi has been heralding the launch of the e-tron SUV for some time, but until Monday it had not shared many details of the vehicle.
The e-tron is electric, and has two electric motors — one in the front and one in the rear — driving all four wheels. The Hungarian factory building motors for the e-tron will start with a production pace equivalent to 200 vehicles a day, Audi officials said.
In Europe, the vehicle will use cameras instead of conventional mirrors to give drivers a view to the rear. That feature is still not approved by US regulators.
However, in many other respects the e-tron is a conventional, mainstream luxury SUV. It offers seating for five, and its length and wheelbase position it in the center of the market for midsize, five-passenger luxury SUVs such as the BMW X5. The e-tron is 5 inches (13 cm) shorter than the Tesla Model X, and it has conventional doors. The Model X uses vertically opening “falcon wing” doors.
The e-tron will have an advanced cruise-control system that can keep the car within a lane and maintain a set distance behind another vehicle, but the system will be designed so that drivers must keep hands on the wheel.
Audi officials said they do not have official range estimates for the e-tron SUV under US testing procedures. The e-tron’s 95 kWh battery has less capacity than the 100 kWh battery used in the Tesla Model X 100D model, but more than the base Model X 75D.
The Model X 100D is rated at 295 miles (475 km) of range by the US government.