Audi won’t be drawn into a price war with other manufacturers, but that doesn’t mean more affordable cars aren’t being considered.
Electric Cars
Several car makers have slashed their electric vehicle prices based on market movements and varying customer demand, but Audi won’t be drawn into an arbitrary price war to the bottom.
Instead, the brand could introduce more affordable versions of electric cars – like the new Q4 e-tron – to Australia based on entry-level variants already offered overseas.
Likewise, Audi has a policy of introducing price discounts based on “tangible changes”, according to Audi Australia’s head of product, Matthew Dale.
“We're not in the market to bounce prices around. We're in the market to look after our customers and to offer them the best product that Audi's got to offer” Dale told Drive.
In practice, Audi’s pre-launch price reduction of the Q4 e-tron medium SUV was based on production cost savings provided by the MY25 version.
“[Before the car arrived in the country] we changed [to a higher-density] battery chemistry… Less cobalt, less manganese, more nickel. That gives the battery higher density, but it also gives us a cost saving that we pass on to the customer,” said Dale.
“So the main customer benefit is their saving because the manufacturer is passing it directly onto them, but secondly more range. Higher density, better range. So it was a win-win for us, and for the customer.
“That was why we lowered the price.”
Although Audi won’t discount the price of its cars already in the market, it is eyeing the more affordable Q4 40 e-tron variant overseas.
The current most affordable version of the Q4 e-tron in Australia is the 45 e-tron, which costs $84,900 plus on-road costs.
“We're certainly evaluating all products,” Dale said.
“If we evaluate the market and there's genuine customer interest in a car like that, because the thing is with a smaller battery, it's a smaller range as well, so it's that fine balance.
“But there then might be customers that will be using that as an A-to-B city car.. That [entry 40 e-tron] product definitely makes sense for that.”
“We are looking at the knock-on effect of that later on in the life cycle of the car. So, if a customer does go and trade that vehicle in, it's what value is on that car,” said Dale.
“If prices bounce around, it's very hard to determine [depreciation come time to sell].”
However, if there is a physical change in a car’s specifications, that is deemed worthy of a price fluctuation, according to Dale.
“That’s the thing, if you've got a tangible change, our view is that the customer should benefit from that.”
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Tom started out in the automotive industry by exploiting his photographic skills but quickly learned journalists got the better end of the deal. With tenures at CarAdvice, Wheels Media, and now Drive, Tom's breadth of experience and industry knowledge informs a strong opinion on all things automotive. At Drive, Tom covers automotive news, car reviews, advice, and holds a special interest in long-form feature stories.
