German automaker’s sales plummet by 93% as competitors thrive
Audi AG, a stalwart of German automotive engineering, is facing a dramatic decline in South Korea, with sales plummeting by a staggering 93% compared to the previous year. The once-revered brand sold a mere 179 units in January 2024, down from nearly 2,500 units in the same month of 2023, according to data released by the Korea Automobile Importers & Distributors Association (KAIDA).
The sharp downturn has relegated Audi to a marginal 1.4% share of South Korea’s import car market, a far cry from its former standing as one of the top three German premium auto brands in the country. In contrast, competitors such as BMW and Mercedes-Benz continue to dominate, with respective market shares of 33.1% and 22.4%.
Experts in the auto industry attribute Audi’s decline to a combination of factors, including a lack of new models and marketing campaigns. While BMW and Mercedes-Benz have capitalized on Korean consumers’ preferences with timely releases and strategic marketing, Audi has faltered in both regards.
The absence of aggressive marketing campaigns, coupled with a dearth of new models, has left Audi trailing behind its rivals. BMW, for instance, introduced its new 5 Series to the Korean market last November, signaling a proactive approach to meet consumer demand. In contrast, Audi’s promotional efforts have been muted, with the cessation of double-digit discount promotions in the latter half of last year.
Compounding Audi’s woes is the absence of imminent model releases in the first half of this year. While BMW and Mercedes-Benz have swiftly rolled out new offerings, Audi’s lineup remains stagnant. Even its forthcoming model, the Q8 e-tron, faces hurdles with a price tag exceeding government subsidies for electric vehicles.
Market observers warn that without significant adjustments to its marketing strategies and product launches, Audi may struggle to regain its former prominence in South Korea’s import car market. The brand’s diminishing sales contrast sharply with the overall growth of imported car sales in the country, which reached 271,034 units in 2023.
Audi’s decline underscores the challenges posed by evolving consumer preferences and intense competition in the global automotive industry. With rivals surging ahead, the once-iconic brand faces an uphill battle to reclaim its position in the South Korean market.
