Audi to simplify new energy strategy

AUDI will look to ‘simplify’ its new energy vehicle (NEV) strategy by offering battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV) models alongside traditional internal combustion engine (ICE) and hybrid electric vehicle (HEV) offerings in key Australian vehicle segments.

Speaking with GoAuto at the national launch of the Q6 and SQ6 e-tron this week, Audi Australia managing director Jeff Mannering said access to a broad range of NEV technologies will allow the brand to “rebalance” its portfolio in concert New Vehicle Efficiency Standard (NVES) requirements.

“The trajectory we set ourselves on two years ago has seen not only good uptake of BEVs, but it’s also helped us wade into the PHEV discussion a little bit further,” he said.

“The CO2 regulations that the government is putting in place has prompted a little bit of a recalculation on everything.

“Were we to rely solely on BEVs, we could be in some bother, which is why we’ve opted to take a more targeted strategy.”

Mr Mannering said that by offering multiple NEV and traditional powertrains across key model lines Audi Australia would be in the enviable position of being able to comply with the incoming emissions rules while simultaneously ensuring sales growth and meeting the requirements of its customer base.

“The customer ultimately dictates what cars they want to buy,” he emphasised.

“If we have a BEV, a PHEV, and an ICE variant – or a few ICE variants – in every segment that we compete in, then I think that is a more customer-focused approach.”

While the premise may appear to complicate those ranges targeted – by introducing even more alternatives into each – Mr Mannering said Audi Australia’s sales volume gave it the leverage needed to source models from its global headquarters.

“I wouldn’t say we’re broadening the range; I actually think you could see it as a kind of simplification,” he suggested.

“If you take A4 and A5 segment, for example, our biggest volume was probably the 2.0-litre turbocharged quattro.

“That’s not necessarily to say we’re going to drop it (in favour of a PHEV), but if you have a PHEV available that offers the same power and the price position is pretty much the same, you’d have to question if you needed the other car.

“We will look at every single car to see what engines are available. Our relationship with Europe is such that we’re a little higher up on the list … we get access to almost everything in the portfolio.

“But we won’t add another car unnecessarily. This is what I mean by being able to rationalise the fleet, or even the portfolio in general.”

While Mr Mannering would not be drawn on the current percentage of battery electric vehicles it sells in Australia, he suggested the arrival of the Q4 and Q6 e-tron (and others) would help to drive interest in the technology – especially once the full impact of the NVES makes its presence felt.

“There is a definite demand for (our) electric product, and of course NVES and the current the economic situation may influence what cars people are buying,” he added.

“That said, I think we are in a better position than some (OEMs in the Australian market), and we will keep moving forward with even more excellent new cars coming between now and the end of the year – important vehicles that will help to grow our core volume.”