Audi China changed coaches, how to carry forward the "golden 10 years" strategy?

Nexer abruptly announced his retirement after returning to the Chinese market as president of Audi China for 20 months. As soon as the news came out, it triggered a strong discussion in the industry. In addition to lamentations, it is more worth paying attention to where Audi's future development in China will go.

The veteran returns and opens a new era of Audi in the North and South

Audi has announced a new appointment for its core management functions in the Chinese market: from January 1, 2022, Wen Zeyue will become President of Audi China, leading Audi's business operations in China. The current President of Audi China, Mr. Anschho, is retiring.

Nexer, who took office as the head of Audi China in April last year, was once considered by the industry to be "the Audi manager who understands the Chinese market the most", and even many reports directly called him "China Pass", so he also has a more down-to-earth title - "Hao Ge". Nexro has received such recognition in the Chinese market because he has twice led Audi into a new stage of development in China.

According to public information, Nexro has been with the Volkswagen Group since 1982. From 2005 to 2008, he was the General Manager of the Audi Sales Division of FAW-Volkswagen, responsible for the sales of the Audi brand in China. Under The leadership of Nesperau, Audi has achieved "the first high-end car brand in the Chinese market to achieve annual sales of more than 100,000 vehicles.". According to public data, Audi's sales in China reached 100,900 vehicles in 2007 (excluding Hong Kong), an increase of 24.8% year-on-year, pressing the "acceleration button" for Audi's development in China. In 2009, Neshow returned to its headquarters in Germany to take charge of the german market for the larger Mass brand.

But in the decade since Neschhor left, China's auto market has changed, and Audi has encountered a "darkest moment" in 2019. As the earliest luxury brand in China, Audi has maintained the title of champion in China's high-end car market in the past 30 years, but this record was broken in 2019, and BMW and Mercedes-Benz both surpassed it; returning to the global market, Audi was once inferior to Mercedes-Benz and BMW. In this context, Nesper has returned to the Chinese market, and his return has once again injected new vitality into Audi, which is in a critical period of change.

The most important decision after Nexer's return was to open a new chapter in the Chinese market for Audi and its joint venture partners in China.

On December 23, 2020, Audi, FAW and SAIC signed a joint agreement to agree on Audi's future sales channels in China after SAIC Audi starts production in 2022. In the future, FAW-Volkswagen Audi domestic models, Audi imported models, and Audi PPE models will be marketed by the FAW-Volkswagen Audi Sales Division (upgraded to an independent sales company this year), and SAIC Audi's domestic models will be marketed by SAIC Audi's internal team.

Dusman, Chairman of the Board of Management of Audi AG, said: "In the past two years, Neschau has successfully written a new chapter in the development of Audi's business in China. During this year's Shanghai Auto Show, Neshow joined forces with China's General Manager, President of SAIC Motor and Volkswagen Group China CE0. This historic moment is the best portrayal of the new development of Audi's business in China. ”

Can the new coach become a "key gentleman"?

Audi understands the importance of China as its largest single market and has accelerated its strategic layout this year. Under the helm of Nexer, the Audi brand will also take the "Golden Decade" as a major strategic adjustment direction in the face of the next new decade, and it can be said that 2021 will become the new beginning of Audi's "Golden Decade".

In this critical period, the sudden change of coach, Wen Zeyue can become a key figure in the "Golden Decade" after taking over the baton, has also become the most concerned issue in the industry.

Wen Zeyue joined the Volkswagen Group in 2004, and in 2013, Wen Zeyue became the deputy general manager and director of FAW-Volkswagen Automobile Co., Ltd. (Technology), responsible for technology research and development, product management and manufacturing. After taking office, the important task facing him is to further enhance Audi's sales and profits in the Chinese market and balance the competition between North and South Audi while enhancing brand value during the critical period of the "Golden Decade".

In this regard, Dusman said: "In the past two years, our influence in the Chinese market has been further strengthened. With the appointment of Wen Zeyue, we will continue to contribute to the future development of travel in China and, together with our partners in China, continue to implement Audi's electrification strategy in its largest market, Wen Zeyue has extensive experience in the Chinese market, and in this role, he will play a key role in promoting Audi's strategy in the end of China. ”

It should be known that the pattern of second-tier luxury brands is changing, the sales volume of "dark horse" red flags is rising, and the domestic luxury car market is inseparable from consumption upgrades, reflecting that China's auto market is changing from "high speed" to "high quality". Such a change also means that the luxury car market is entering a new stage. According to Audi's "Golden Decade" plan, by 2023, Audi hopes to achieve an annual sales target of 1 million vehicles in China, the world's most important market. But to achieve the million target, it means that the next 3 years compound growth rate needs to exceed 10%, and Audi has to focus on far more than the problem of sales.

Car commentator Ren Wanfu told the "China Times" reporter: "Now the luxury car market blue ocean is still very large, on the one hand, the domestic automobile consumption upgrade trend is still very obvious, on the other hand, luxury brand products, prices and channels will still be further explored, plundering the market share of ordinary brands." "This means that Audi's accurate grasp of the blue ocean of the luxury car market is the key to whether Audi can stand in a permanent place."

In the "Golden Decade" strategy, electrification transformation is an important part. Electrified models will also be an important growth point for Audi in China in the future. By 2025, Audi expects to launch more than 30 electrified models, of which about 25 will be pure electric models, and electric vehicle sales will account for one-third of the total sales share. For Audi and Wen Zeyue, electrification is a transformation process, not overnight, and requires continuous deep ploughing and hard work, which will be no small challenge.

Ren Wanfu pointed out: "If you want to open a new decade in China, the keywords of science and technology, intelligence and electric cannot be run away. Audi already has the next golden decade plan and put it into practice, in the face of the future transformation of the automotive industry, whether in terms of management structure or partnership, whether it is product lineup or service concept, Audi has also had a clear plan. The next decade is naturally worth looking forward to, but the pressures and challenges cannot be ignored, and we will wait and see how Audi and Wen Zeyue will respond to the unknown crisis and complete the transformation. ”

Responsible Editor: Li Yan'an Editor-in-Chief: Yu Jianping