CC Wealth Ltd reports on Volkswagen AG's Audi division as they invest $30.3 billion to take the crown as the world's best selling luxury car maker to chief rival and German compatriot BMW.
May 5, 2014 (Newswire) - With its parent company Volkswagen having just beaten out General Motors Co in the all important Chinese market, due largely to the popularity of the Audi marquee, the German luxury car maker is set to invest $30.3 billion by 2018 to seal its position as the world's number one luxury vehicle brand. With annual sales in excess of 1.5 million vehicles, Audi plans on raising the limit to 2 million vehicles a year globally.
With strong sales in 2013 and impressive capital reserves, Audi will set about expanding production facilities in China, Mexico, and Brazil as well as in its home country. Audi's product line is also set to increase to 60 models by 2020, up from its current offering of 49 various models of sports cars, sedans and SUVs. Strong attention is also being paid by the auto maker to brining premium electric variants of its range to market.
"Audis strong performances in Asian markets, China in particular have pretty much made them the favorite child at Volkswagen, they can do no wrong and the amount of capital being released for their global expansion showcases this. With their new A3 models being manufactured in China, and therefore being exempt from sales tariffs of 25% they will be hitting BMW very hard in the largest luxury car market" detailed Asia Desk Analyst for CC Wealth Ltd, Andrea Woods.
The year overall has been a good one for Audi's parent company Volkswagen AG, with solid gains against luxury manufacturer BMW and beating out GM in Chinese sales figures by approximately 70'000 units, even as both companies broke the 3 million units sold mark. Shares in Volkswagen AG have trended up over the course of 2013 and now offer an ROI of 23.90% for the year to date.
"We can expect a very busy start to the New Year in regards to luxury car sales in Asia, with the big three auto makers BMW AG, Daimler AG and Volkswagen being led by their Audi marquee. On lower end vehicle stiff competition will be delivered from the American Ford and GM concerns, with Toyota expected to come out ahead in that market Asia wide." concluded Andrea Woods of CC Wealth Ltd.