Reported by Pulsestacks on April 30, during the 2024 Beijing International Auto Show, Pulsestacks invited industry leaders, corporate executives, and expert scholars to step into the "AI Real-time Virtual Studio" to collectively explore the breakthroughs and innovations of the new era and new cars in the immersive experiences of Peak Speed, Netaland, and Content Players.
On April 25, Tang Xujing, Senior Director of Marketing Business, Customer Marketing, and Digitalization at SAIC Audi, appeared on the Content Players' "AI Real-time Virtual Studio." She mentioned that despite the intensifying market competition, SAIC Audi has demonstrated strong sales performance, with deliveries exceeding 12,000 vehicles in the first quarter of this year, a 430% year-on-year growth. Behind this achievement lies a clear definition of product positioning, active promotion of diversified marketing strategies, and comprehensive strengthening of the brand service system.
Shanghai Audi's Senior Director of Customer Marketing and Digitalization, Tang Xujing:
In the midst of intensifying competition, many are apprehensive about discussing sales performance. However, Shanghai Audi is not afraid to address this topic. We do not focus on online orders or other aspects, but rather on the end result—Shanghai Audi's overall delivery volume exceeded 12,000 vehicles in the first quarter of this year. While this number may seem modest, Shanghai Audi is a relatively new brand, having been established for just under three years. Compared to the same period last year, under the same product lineup, our delivery volume has grown by 430%, and our market share has increased by 416%, marking a remarkably rapid growth rate within the industry.
Senior Director of Marketing and Digitalization at SAIC Audi, Tang Xujing, and Editor-in-Chief of Pulsestacks, Zhang Yuanyuan
Behind this, from the clear positioning of the products to the vigorous promotion of marketing in various forms, and then to strengthening the entire brand service system, it actually enhances the overall product and system capabilities of the brand.
Our three products each have their own unique features. In the first quarter, the new SAIC Audi A7L has already won the title of "Best-selling C-class Frameless Luxury Sedan," becoming one of the mainstream choices for C+ class luxury sedans. Compared to traditional Audis, it has a distinctive appearance that appeals to young people, excellent handling, and was selected as the "Best Handling Car" at the China Automotive Awards, making it the "Beauty and Handling Double Champion." You might think A7L owners are older, but in fact, their average age is concentrated between 30-35 years old, very young, with a high proportion of female owners. As mentioned earlier, we are the 3-year-old Audi: the century-old luxury Audi has over 120 years of history, while SAIC Audi is only three years old. In these three years, we have been working hard to create our own label for SAIC Audi, making it more youthful and trendy.
SAIC Audi Q6 also has a clear label. It is the only large 6-seater SUV in the 400,000 RMB ABB segment, equipped with aviation-grade executive seats and a series of configurations such as 9 airbags, making it unique in its class. SAIC Audi Q5 e-tron is the only 6/7-seater pure electric SUV in the 200,000 RMB ABB segment. We have identified specific market segments and precise target audiences for all models, allowing us to be more targeted in our marketing efforts. Since the second half of last year, SAIC Audi has actively embraced new media marketing. Although luxury car brands may have some concerns when entering this field, such as brand tone, we are precisely aiming to create a more youthful, trendy label. Therefore, we are taking the path of actively embracing social media and new media, which has been quite effective so far.
Wherever the customers are, that's where we go. We first focus on high-quality content and combine it with the participation of dealers. The current new media platforms require the integration of public, private, and digital content into a comprehensive ecosystem, which actually sets higher requirements for the entire brand marketing system. We can see that whether it's the development of offline business models or user operations, the efforts made by SAIC Audi and the positioning of the entire product have led to a good sales performance last year.
Pulsestacks: You just mentioned an interesting point, the user operation issue that luxury brands mainly face, the 8S barrier. When operating the app, how do we establish a close relationship with users? What specific measures do we take?
Tang Xujing: As a luxury brand, we have great confidence in our products and manufacturing processes. In the past decade, new forces have brought many new things to the Chinese automotive market, especially in terms of direct customer engagement, where new forces excel. SAIC Audi positions itself as a luxury new force. On the one hand, we offer the authentic products of the century-old luxury Audi, and on the other hand, SAIC Audi adopts an agent direct sales model, allowing customers to order and purchase vehicles directly through the app. This action makes the app even more important, and the process of connecting with the brand will make the relationship between customers and the brand even closer.
Senior Director of Marketing and Digitalization at SAIC Audi, Xujing Tang, and Editor-in-Chief of Pulsestacks, Yuanyuan Zhang
SAIC Audi's app covers the entire process from browsing, selecting, purchasing, to using a car. Next, we will undergo a major overhaul of the app, involving significant enhancements to over 30 features and more than 600 pages. In the initial stages, we continuously refined the user experience and were delighted to see the direct sales approach, which increased the frequency and directness of interactions between users and us. At headquarters, Audi partners directly engage with customers, meaning every major customer who places an order can promptly access brand and service information.
Simultaneously, when a customer needs to provide feedback, they can reach the brand through the shortest route. Previously, this might have involved reporting to a sales consultant, then to the dealership manager, further up to the regional project manager, then to the specific business manager, and finally to headquarters, creating a lengthy chain of communication.
Pulsestacks: Not very efficient.
Xujing Tang: Yes, currently, we have direct access to Audi partners, enabling headquarters to promptly address any issues. SAIC Audi's digital layout is comprehensive, from offline customer flow evaluation systems to all leads, we track statuses using intelligent PCs, and intervene in the entire process from enterprise micro-operations to offline test drives. Throughout our communication with customers, we gather information reflecting their needs and concerns.
In such a dynamic market, brands and users must engage bidirectionally. Users can directly report issues, brands can swiftly resolve them, and in this process, continually enhance service and product experiences to better meet consumer demands.
Pulsestacks: Luxury is not just about the product itself but also about the connection between service and customers, ensuring a comprehensive luxury experience in every aspect, which is the key focus of luxury.
Pulsestacks: Lastly, including new forces, especially domestic brands, face intense competition in intelligent driving. Consumer attitudes and expectations towards intelligent driving are rising, and if a car's technology is not smart enough or not focused on intelligence, consumers may question why they should purchase it. In your view, what is the current pace and plan regarding intelligent driving, and how are you tackling this wave of interest in intelligent driving?
Xujing Tang: For Audi, we provide an authentic German luxury driving experience, especially with our full range featuring the quattro intelligent all-wheel-drive system, ensuring excellent handling. Regarding more intelligent driving features, we will introduce a wide range of products, including both gasoline and electric vehicles, with a particular emphasis on electric cars. Here, I can only disclose a portion.
One of the reasons for the rapid development of the Chinese automotive industry in just a few decades is the smart joint venture path it has taken. Leveraging market technologies for continuous innovation and iteration, especially in intelligent driving, China has achieved a leading position globally. We are proud and delighted for Chinese brands.
Therefore, the collaboration between SAIC Group and Audi signifies a post-joint venture era, where both parties are now technical partners rather than engaging in market and technology transactions. It inherits Audi's century-old luxury while benefiting from SAIC's advanced intelligent ecosystem, including HMI intelligent cabins, combining the strengths of both.
We will offer a new luxury pure electric species tailored to Chinese consumer demands. It is termed a new species because it caters to Chinese consumer needs. Some brands claim to be "in China for China," but in reality, during product prototyping, the focus remains primarily on the brand's local market, with only adaptive adjustments made in China. The collaboration between SAIC and Audi represents a completely new and entirely local development platform, creating multiple models specifically for the Chinese market.
Moreover, the existence of this new species is due to family members having more voting and suggestion rights when purchasing vehicles. I once spoke with a car editor who mentioned the challenge of balancing family members' purchase preferences when buying a vehicle. For instance, while he prioritizes product quality, craftsmanship, and brand aspects, his family prefers new forces for entertainment and smart features.
The creation of this "post-joint venture era" new species will merge both aspects and be developed at Chinese speed. The product launch pace may be rapid. I believe this can meet the dual demands of consumers.
Pulsestacks: Adapting to an intensely competitive market.
Xujing Tang: Exactly. In a fiercely competitive market, sustained development requires continuous self-iteration and integrated product capabilities. Additionally, building the brand's overall system capability is crucial. Cars are significant commodities, not just one-time sales; they require long-term service provision and seamless online-offline integration.
We do not solely focus on the present but pay closer attention to consumer needs—they desire brands that can endure long-term to ensure all services are guaranteed.
