Is It Struggling In China?

• After an ‘overwhelming’ response, AUDI is struggling in China.
• The company is slashing prices for its E5 Sportback.
• A second SUV is scheduled to go on sale later this year.

In 2024, Audi launched a new sub-brand in China called, well, AUDI. Developed as part of a joint venture with SAIC Motor, the AUDI brand officially debuted two years ago and has since introduced two models: a sportback and an SUV.

At first, AUDI appeared to be off to a hot start. Company executives described demand for the E5 Sportback as “overwhelming,” with more than 10,000 pre-orders placed within minutes of its debut. Since then, however, momentum has slowed—and the company is now working to reignite interest.

Photo by: Audi

According to the China EV Data Tracker, AUDI has only sold 7,070 E5 Sportbacks so far—a few thousand fewer than the original pre-order number—with only 420 units sold in January. Now, the company is slashing prices in an attempt to increase demand.

AUDI is offering a combined ¥30,000 (about $4,400) discount on the E5 Sportback. The incentives include ¥10,000 in purchase tax compensation, a ¥10,000 cash discount, and a ¥10,000 trade-in subsidy. That lowers the starting price to ¥205,900 (roughly $29,910).

At that price, the E5 Sportback is closer to rivals like the Zeekr 007 GT and the Xiaomi SU7—two popular options in China. Buyers can also choose between a five-year, zero-interest installment plan or a seven-year low-interest financing option.

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Source: Audi

The base E5 Sportback features a single rear-mounted motor paired with a 76.0-kilowatt-hour battery pack, producing 295 horsepower and delivering a claimed range of 384 miles (618 kilometers) on the CLTC cycle. A more powerful Quattro variant uses a larger 100.0-kWh battery and generates an impressive 776 horsepower.

It’s still too early to say whether AUDI will ultimately succeed in China. The brand plans to launch its SUV later this year, which could help broaden its appeal. Despite strong initial interest, early sales figures suggest the road ahead may be challenging.

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Motor1’s Take: Audi was late to the game in China, partnering with SAIC in only the last few years. With established American, European, Japanese—and especially domestic Chinese—automakers already entrenched, AUDI will need to move quickly and strategically to gain ground.

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