Audi reviews China 2015 sales target

FRANKFURT (Reuters) -- Audi is reviewing its 2015 goal of selling 600,000 automobiles in China, the latest signal that a decline in demand for passenger vehicles in the planet largest auto market is more serious than car companies anticipated.
Last year Audi sold 578,900 automobiles in China, an increase of nearly 18% compared with a year before.
Audi's revenue operation in China has drastically worsened in the last seven months, with shipping increase steadily dropping from 30% last December to 0.2% in April, before slipping into the red in-May and June, when revenue slumped 5.8 percent.
Audi stated in the Shanghai auto-show in April that its yearly sales in China were poised to achieve 600,000 for the first time in 2015.
Audi's Chinese revenue increased 1.9% to 273,853 automobiles in the 1st half. "We're tracking the marketplace quite carefully and expect additional increase in the mid- and long term," the firm said in an emailed reply to questions.
"Essentially Audi are saying the remaining year is going to be pretty much level," Arndt Ellinghorst, a London-based analyst at Evercore ISI, stated in a notice. After a lot more than tripling its Chinese deliveries since 2009, the business name is confronting the slow down as its bestselling A4 sedan is ageing, he explained. It's going to present a revamped variant of the A-4 in September.
Audi mentioned it could offer an upgrade on its sales goal for China when it releases financial results for the 1st half on July 30.
This week, Brilliance China Automotive, BMW's local joint-venture partner, stated it expects earnings to drop by 40% in the first-half primarily due to poor interest in BMW's automobiles in an indication that even the most powerful brands are beginning to suffer.
Last week the China Association of Automobile Manufacturers (CAAM) lowered its 2015 car revenue growth forecast to 3% from 7% formerly, leaving car companies like Volkswagen possibly exposed.
Bloomberg contributed to this report
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16.07.2015
ID:2460

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