Go Back   Team-BHP > BHP Worldwide > The International Automotive Scene


Reply
 
Thread Tools Search this Thread
Old 31st July 2007, 09:29   #1
Senior - BHPian
 
madan80's Avatar
 
Join Date: Jan 2006
Location: Santa Clara, CA
Posts: 1,356
Thanked: 73 Times
Default Audi Catching up with BMW?

Audi's latest results have put analysts in a tizzy. They are expecting that if the current trend of Audi's sales continues - it will overtake BMW in operating profits by 2010 and by 2012 it will overtake the operating revenues. Analysts expect the rate of growth of Audi to be at 10% per annum for the next three years about 3 times that of BMW. All these are fueled by the new models launched by Audi.

The sights trained on Audi after the 1998 launch of the Audi TT, never did the industry expect a car subsidiary to catch up with main manufacturers. Audi is successfully wielding the same growth strategy premium-market leader BMW deployed in 2000 to outsell Mercedes. Audi, Germany's No. 3 premium automaker, is on a tear to expand its lineup of high-performance cars such as the posh Q7 SUV and the A5 coupe, and it's employing head-turning design to steal customers from the competition.

The numbers tell the story. In the first half of 2007, Audi's worldwide car sales rose 9.8%, to 509,079, as revenues rose 12.4%, to $24 billion. Global sales at BMW were up 4.5%, to 730,285, by comparison, while Mercedes' fell 3%, to 591,200. First-half revenues at Audi rose 12.4%, to $24 billion. Mercedes edged up 1%, to $34 billion. BMW releases first-half financial results on Aug. 1.

With the growing brand awarness - older models, that usally have a lifespan of 3- 4 years usually decline - however, the Audi A4- a Six year old Audi starts at $28000.

Audi managed to sell 162,900 A4 sedans in the first half of this year, up 1.5% over the same period a year ago. And now it is planning to unveil a new-generation A4 in September, which should give it yet more room to run.

In the first half, Audi's U.S. sales rose 13%. Until recently Audi sold its cars in the U.S. through Volkswagen dealerships, which muddled its image by association with a mass-market brand. In markets such as Miami, Los Angeles, and New York, upscale glass-and-steel dealerships have opened, helping to lure buyers with higher incomes. The edgy, minimalist design of the new dealerships exudes upmarket ambience.

However....
Audi is not just selling more cars, it's making more money on those cars. First-half earnings zoomed ahead as more expensive models and an increasingly tony brand image reaped higher margins per car. In the first half, operating profit increased 39.5%, to $1.38 billion, and net profit rose 67%, to $937 million. That puts Audi's 6.4% operating margins on a par with Mercedes' long-term returns and very close to BMW margins. Audi's management vowed two years ago to be the world's most successful premium car manufacturer by 2015.

More detailed report here: Audi Shifts into Overdrive
madan80 is offline   Reply With Quote
Old 31st July 2007, 13:39   #2
Team-BHP Support
 
theMAG's Avatar
 
Join Date: May 2006
Location: Long Island, NY
Posts: 7,033
Thanked: 1,470 Times
Default

Good for Audi. The 3 niche Germanic mfrs seem to have higher-than-average profits compared to the rest of the industry. Efficient operations, undoubtedly
theMAG is offline   Reply With Quote
Old 31st July 2007, 16:51   #3
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,713
Thanked: 89,078 Times
Default

Awesome stuff by Audi. If speculations are anything to go by, Audi will overtake Mercedes-Benz in worldwide sales very soon. But in outright sales, man....BMW is in a different league altogether!
GTO is offline   Reply With Quote
Old 31st July 2007, 17:51   #4
Senior - BHPian
 
black12rr's Avatar
 
Join Date: Dec 2005
Location: Ridin earth now
Posts: 1,259
Thanked: 272 Times
Default

I dint know Audi and BMW had cut throat competion untill I saw these.

http://i19.tinypic.com/623vww7.jpg
http://i9.tinypic.com/4qia9oo.jpg
http://i9.tinypic.com/4tgk9qt.jpg
black12rr is offline   Reply With Quote
Old 31st July 2007, 18:20   #5
BHPian
 
highwayblaze's Avatar
 
Join Date: Feb 2004
Location: Chicago/Mumbai/Pune
Posts: 771
Thanked: 0 Times
Default

Quote:
Originally Posted by black12rr View Post
I dint know Audi and BMW had cut throat competion untill I saw these.

http://i19.tinypic.com/623vww7.jpg
http://i9.tinypic.com/4qia9oo.jpg
http://i9.tinypic.com/4tgk9qt.jpg
Awesome simply fantastic. The last one was an absolute "EAT THAT". Where did you get these. They're amazing.
highwayblaze is offline   Reply With Quote
Old 31st July 2007, 18:23   #6
Senior - BHPian
 
Join Date: Mar 2005
Location: N.A
Posts: 6,834
Thanked: 1,503 Times
Default

If one were shopping for a German marque today, one would go for an Audi over a Beemer or a Merc.

The excitement the new R8 is generating in this market is amazing - the dealer expects record orders as soon as it is announced.

The only Audi that really didnt "make the grade" recently is the Q7. Every other Audi has been a bestseller.
Steeroid is offline   Reply With Quote
Old 31st July 2007, 19:44   #7
Senior - BHPian
 
1100D's Avatar
 
Join Date: Jun 2006
Location: Calcutta
Posts: 4,179
Thanked: 2,358 Times
Default

Thats surely a healthy competition between the German Giants. They have a race of their own!
1100D is offline   Reply With Quote
Old 1st August 2007, 09:27   #8
Senior - BHPian
 
madan80's Avatar
 
Join Date: Jan 2006
Location: Santa Clara, CA
Posts: 1,356
Thanked: 73 Times
Default

interesting to note is that despite the fact that the other auto companies are doing well - the big three are still spinning down! Why?
madan80 is offline   Reply With Quote
Old 1st August 2007, 09:51   #9
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,713
Thanked: 89,078 Times
Default

Quote:
If one were shopping for a German marque today, one would go for an Audi over a Beemer or a Merc.
Not on this side of the planet. Look at the recent poll...it reflects Audi's actual performance in the Indian market.

Quote:
The only Audi that really didnt "make the grade" recently is the Q7. Every other Audi has been a bestseller.
Its not selling well in Europe and North America? In India, it outsells every other Audi.
GTO is offline   Reply With Quote
Old 1st August 2007, 23:28   #10
Senior - BHPian
 
devarshi84's Avatar
 
Join Date: Jun 2005
Location: Ahmedabad - Tor
Posts: 3,996
Thanked: 118 Times
Default

It's tough for VW to keep up with Audi sales.

1. Competition.
2. Brands priority.
devarshi84 is offline   Reply With Quote
Old 1st August 2007, 23:32   #11
Distinguished - BHPian
 
Mpower's Avatar
 
Join Date: Mar 2005
Location: Bangalore
Posts: 10,432
Thanked: 1,682 Times
Default

I think the new A5 will be a tremendous success for Audi. The same platform will be used for A4 and A6 and the SUV brethern. Good Looking and Sporty..aimed squarely at BMW.
Mpower is offline   Reply With Quote
Old 1st August 2007, 23:34   #12
Senior - BHPian
 
devarshi84's Avatar
 
Join Date: Jun 2005
Location: Ahmedabad - Tor
Posts: 3,996
Thanked: 118 Times
Default

and how many noticed that the New AUDI grille is actually making AUDI standout in the crowd just like the three pointed star and the beemer grille.
devarshi84 is offline   Reply With Quote
Old 2nd August 2007, 14:57   #13
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,713
Thanked: 89,078 Times
Default

Quote:
Originally Posted by devarshi84 View Post
and how many noticed that the New AUDI grille is actually making AUDI standout in the crowd just like the three pointed star and the beemer grille.
Devarshi, check out https://www.team-bhp.com/forum/inter...ore-weird.html this related discussion. Some interesting comments in there.
GTO is offline   Reply With Quote
Old 3rd August 2007, 09:34   #14
Senior - BHPian
 
devarshi84's Avatar
 
Join Date: Jun 2005
Location: Ahmedabad - Tor
Posts: 3,996
Thanked: 118 Times
Default

GTO: check out the posts of those users whom you would put your money on. And yes its Weird by American standards.

And all I want to say is, while there wasnt any really design cue to standout in previous Audi (minus the logo) now the grille makes it standout in the crowd. You see it and you know its Audi.
devarshi84 is offline   Reply With Quote
Old 20th February 2008, 18:30   #15
Senior - BHPian
 
Ricky_63's Avatar
 
Join Date: Dec 2006
Location: Gurgaon
Posts: 3,845
Thanked: 375 Times
Exclamation

Quote:
Originally Posted by Steeroid View Post
If one were shopping for a German marque today, one would go for an Audi over a Beemer or a Merc.

The excitement the new R8 is generating in this market is amazing - the dealer expects record orders as soon as it is announced.

The only Audi that really didnt "make the grade" recently is the Q7. Every other Audi has been a bestseller.


Sorry for bringing back an old thread - BUT I could not agree with you more on this. The Audi is & will command respect as more & more people get to "experiance" it. It has everything you want in a car & more other than the SNOB value

O.T. BMW is offering a discount on their present stock of 3 series, if any one is interested, PM me.

Cheers

Last edited by Ricky_63 : 20th February 2008 at 18:33.
Ricky_63 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Accidents : Vehicles catching Fire in India bigman The Indian Car Scene 565 15th November 2017 08:46
Supercars & Imports catching fire in India gemballa Super-Cars & Imports in India 48 22nd November 2016 16:13
Catching speed violators from INSIDE the Delhi Traffic Police Interceptor sidindica The Indian Car Scene 65 20th November 2015 18:23
Cars catching fire diffsoft The Indian Car Scene 1 1st August 2009 13:16


All times are GMT +5.5. The time now is 03:43.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks