* Translated by AI

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'The Third German' Audi's Naked Face… Future Competitiveness in 'Electrification and SDV' Also Missing

Published:

Kim gyeong-soo

*This content was translated by AI.

Steve Clout, President of Audi Korea
Steve Clout, President of Audi Korea

The traditional 'German Three' that once dominated the domestic imported car market is crumbling, with a clear 'two-strong-one-weak' structure becoming entrenched. While BMW and Mercedes-Benz solidify their position in the top tier, Audi Korea has fallen behind in size competition and is now engaged in a fierce battle for fourth place among imported cars alongside Volvo and Lexus.

According to comprehensive data released on the 3rd by the Korea Association of Imported Automobiles (KAIDA) on new registrations from January to June, the final winners in the mid-tier leap competition for the first half of this year (January–June) were Lexus (7,819 units) and Volvo (7,470 units). Looking only at June, it may appear as a decisive victory on paper, but a closer look reveals that this result was merely fabricated through extraordinary 'discount promotions' reaching double-digit percentages based on the list price. Audi Korea's cumulative sales for the entire first half totaled 7,337 units, placing it last among the three German competitors. This is hardly at a level comparable to being considered a 'competitor.' Although the year-over-year growth rate increased, this was merely a marginal achievement of 'quantitative growth' due to the base effect from last year's severe slump, representing a crushing defeat in 'qualitative growth' where both the price defense line and trust of a premium brand were lost—a painful report card.

Especially, Audi Korea's lack of pipeline in the upcoming second-half competition for 'electrification' and 'SDV (Software-Defined Vehicle)' that will reshape the imported car market is heightening concerns. Competitor Volvo is launching its flagship electric SUV 'EX90' and premium electric sedan 'ES90' based on the next-generation platform (SPA2) to secure a foothold in the EV market. Lexus also plans to solidify its dominant position in the eco-friendly vehicle market by unveiling full-change electrified models of its bestseller 'ES.' This contrasts sharply with BMW's upcoming new vehicles based on its next-generation SDV architecture 'Neue Klasse' and Mercedes-Benz seizing software leadership through its proprietary operating system 'MB.OS.'

President Steve Clout attended the Audi Korea 2025 New Year Media Round Table held at the Shilla Hotel Yeongbin-gwan in Jung-gu, Seoul, on the 13th, where he introduced 'The New Audi Q6 e-tron.' Through this New Year Media Round Table event, President Clout personally announced this year's plans and vision. It is also reported that Audi aims to reverse last year's poor sales performance by launching 16 new models this year. /Photo=Lim Han-byul (MoneyS)
President Steve Clout attended the Audi Korea 2025 New Year Media Round Table held at the Shilla Hotel Yeongbin-gwan in Jung-gu, Seoul, on the 13th, where he introduced 'The New Audi Q6 e-tron.' Through this New Year Media Round Table event, President Clout personally announced this year's plans and vision. It is also reported that Audi aims to reverse last year's poor sales performance by launching 16 new models this year. /Photo=Lim Han-byul (MoneyS)

In contrast, Audi has already exhausted its key internal combustion engine cards early on, including the ninth-generation new A6 (April) and third-generation new Q3 (June). The next-generation electrified lineup based on the premium electric vehicle platform (PPE), which was unveiled in global markets, faces delays in domestic introduction and certification timing, leaving Audi without any cards to defend against the relentless offensive of eco-friendly and electrified models from competitors in the second half. Furthermore, there is no clear blueprint for SDV response strategies such as over-the-air (OTA) updates and connected services that consumers can directly experience, leading to evaluations that Audi has completely fallen behind in future technology competition.

The bigger problem is that the 'collapse of price trust' triggered by rubber-band-style discount promotions is now holding back even future electrification and software models. Volvo and Lexus maintain a near-cash-price 'No Sale' policy, robustly defending used car residual values at around 60–70% over a three-year period. In contrast, Audi has repeatedly engaged in storm discounts of double-digit percentages shortly after launching new models, resulting in the lowest depreciation rates among imported cars. Even worse, currently sold Audi A6 models have begun offering discounts of approximately 5.7 million won depending on the model and about 7.5 million won for Quattro models right from launch, with slight variations by dealership. This is why a stigma has spread among consumers that "buying at full price means losing out" or "it's a car you have to wait for discounts."

An industry insider stated, "Even if Audi brings in future models equipped with next-generation electric vehicles or software technologies, consumers are likely to avoid purchasing at list prices due to the already collapsed price trust." The insider added, "For Audi Korea, which faces a gap in new models and future technology in the second half, avoiding excessive inventory-clearance discounts for short-term performance and figuring out how to restore the broken premium brand's pricing policy and future vision is a prerequisite for surviving the mid-tier battle against Volvo and Lexus."

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*This content was translated by AI.

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