Audi admits to lagging behind rivals on EVs

Volkswagen Group CEO Oliver Blume has admitted Audi was lagging behind its rivals when it comes to electric cars, but that work was underway to boost the German premium brand in the EV sector.

Speaking to investors, Blume said Audi had “massive potential” that had not been realised in recent years, and that the brand was now undergoing a huge shake-up.

“We did not defend the [Audi brand’s] progressive leadership in its position against key competitors,” Blume was quoted as saying by industry journal Automotive News.

“We also faced severe software problems that delayed the launch plan of exciting electric products.”

In candid remarks to stakeholders, Blume said Audi’s current EV line-up not only lagged the competition but was behind its own capabilities, suggesting that it had been slow to roll out existing Volkswagen Group tech.

That was also a key factor why the brand was underperforming in China, he added.

“The footprint of the group is currently highly dependent on China and the battery-electric vehicle line-up in particular is not competitive in comparison with this market,” Blume said.

According to Automotive News, Audi sold just 136,416 cars in China in the first three months of 2023, down 16 per cent on the same period last year.

The key to Audi’s recovery, Blume said, would be to focus on developing EVs at a faster rate, particularly via the Audi Sport sub-brand.

“The growing RS franchise is a highly attractive business, both from a customer as well as from a financial viewpoint,” he said.

“Therefore, we are already planning a high-performance BEV line-up.”

According to Blume, the 2024 Audi Q6 e-tron could provide the turning point as it’s based on the Group’s new Premium Platform Architecture (PPE) developed with Porsche.

As well as introducing the VW Group’s delayed 1.2 software, PPE is said to allow far faster charging times compared to today, with a 10-80 per cent top-up taking on average 21 minutes.

The same platform will help Audi integrate its Mobileye’s SuperVision semi-autonomous driving aids.

Despite previously admitting to delays, the Audi-developed Scalable Systems Platform (SSP) architecture is also now back on track for a 2026 debut.

As well as the model and R&D overhaul, Blume said Audi would increases profit margins from 11 to 13 per cent by 2030, while staying true to its “high quality standards” and best-in-class customer experience.

Audi will launch its last internal combustion engine (ICE) model in 2025, with every car from then being EV. Come 2033, Audi says it will have ended production of ICE cars.

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