Audi's most expensive cars to get even more expensive with future models – report
02/18/2025 07:00 PM
Amid fresh competition from Chinese brands – which can offer similar technology at a fraction of the price – the German car maker says it wants to push further ‘upmarket’ with its next generation of flagship cars.
German car maker Audi says the next generation of its largest cars and SUVs will wear higher price tags as they push closer to Bentley and Porsche levels of luxury.
It comes as Audi and its German prestige rivals BMW and Mercedes-Benz face fresh competition from Chinese manufacturers, which are proving they can offer similar finishes and features for a much lower price.
Growth for slew of Chinese brands – from luxury spin-offs of familiar names such as BYD and Chery, to new faces Xpeng and Zeekr – is costing established German marques sales in China, the world’s largest and most competitive new-car market.
Audi UK boss Jose Miguel Aparicio is quoted as telling UK publication Auto Express the Volkswagen-owned car maker wants to reposition its prestige brand further upscale in favour of higher profits over outright sales.
It may include a successor for the ageing A8 sedan, unveiled in 2017 and previously planned to go electric with a new model codenamed ‘Landjet’, but it is yet to surface.
"We are making a step upwards in terms of premiumness, increasing the prestige, desirability and perception of the brand, and more interested in the quality of business than the quantity," the executive said.
"A new era is starting and the rules are changing, so we cannot assume that those ones that were premium in the past will also be the winners for the future – we have to earn that status."
After a drought of new models in the wake of the COVID-19 pandemic – as well as various delays – a raft of new Audi models is set to arrive in Australia in 2025.
Among them is the Audi Q4 e-tron electric SUV, new-generation Audi A5 liftback and wagon, Audi Q5 SUV and Audi Q6 e-tron SUV – with the brand recently revising its electric car naming strategy.
In what the Audi UK boss described as an 'evolution' rather than a fundamental change, the push further ‘upmarket’ will begin with what Audi calls 'C' and 'D' segment models – referencing vehicles from the A6 sedan, Q7 SUV and up.
D-segment Audis include the next-generation flagship A8 large luxury sedan, which has been delayed as the car maker revises its electric vehicle strategy.
"We are significantly increasing the centre of gravity in terms of price because we are more present [in these sectors]; the number of customers in C and D segments we want to approach is increasing," Aparicio said.
"That means a significant increase in price, and in order to do it successfully we really need to create this brand attraction and desire.
"The essence for this is product innovation, but we also have to offer a premium customer experience to them; we are talking about making an evolution, moving upwards."
The Audi A6 starts from $123,600 plus on-road costs in Australia, and the Q7 from $108,815 – in line with rivals from BMW and Mercedes-Benz.
Audi must walk a fine line, as Volkswagen Group already includes the Porsche and Bentley brands, which promise a higher level of luxury and performance – at a higher price.
These two brands have been targeted specifically by British car maker Jaguar in its controversial reinvention, which is moving away from competing with Audi, BMW and Mercedes-Benz after decades of slower-than-desired sales.
Aparicio – who took over from Australian Andrew Doyle in October 2024 – said there is space for Audi to move into more expensive price territory without stepping on Bentley and Porsche's toes.
"It's important to ensure that we have the value in the product range, that we have the customer experience that really grants us this premiumness for the future in an EV [Electric Vehicle] battery-electric-vehicle world."
Audi sold 164,000 battery electric cars globally in 2024 among a total 1.7 million vehicles, a decline of 12 per cent on the sales record it set the previous year, behind 2.55 million BMW sales and 2.4 million Mercedes-Benz vehicles across all fuel types.
It also faced challenges around its Brussels, Belgium plant – where the Audi Q8 e-tron is manufactured – which is scheduled to close on 28 February 2025.
Audi sales in Australia in 2024 (15,333) also trailed BMW (26,341) and Mercedes-Benz (19,989).
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