Audi backs hatches and sedans in an SUV world
German car-maker says there is still strong demand for premium compact cars like the A3 and S3 despite surge in SUV salesWhile high-riding SUVs and utes dominate Australian roads these days, Audi continues to invest in far smaller segments of the new car market: hatchbacks and sedans.
Speaking at the launch of the the updated Audi A3 and S3, Audi Australia Managing Director Jeff Mannering said the brand’s commitment to these body styles remains firm with customer demand still strong.
“It is an SUV market, but the segment where the A3 plays was just on 2500 cars [purchased] for us last year. So, it’s a really important volume for us,” he said.
Mannering said the brand continues to field questions about why it persists with hatchbacks and sedans, especially when more and more manufacturers are pulling back from these formats.
“We had questions like, ‘Why [still offer a] sedan and hatch? Why are they important?’” he said.
“Many people come from the mass market, and an SUV like our Q3 is around another $10,000 more, so it [sedan and hatch] is probably a good entry into the premium market,” Mannering said.
Priced at $54,800 plus on-road costs, Audi says its A3 represents an accessible entry point for the premium market – especially compared to an equivalent SUV.
“It’s $54,000, but there’s a lot of customer value. The $10,000-worth of customer value [on the A3/S3 range] is important, and it’s important that we can offer a hatchback and a sedan.”
Audi says that combination of quality, value, and flexibility – available in both hatchback and sedan form – sets the brand apart in the premium compact segment.
“A lot of our competition can’t do that – some can, a lot can’t,” he added. “So, we’ve got a bit of an advantage there.”
He also pointed out that many customers, especially those facing life changes, are reassessing their vehicle needs.
“With the economic times, they may be looking for their next car, a premium car, and they may have had a Q5, and the kids have moved on and they need to downsize,” Mannering said.
“Sometimes they’ve got more kids and they need a Q7 so they go up. It’s just depending on where the situation is, but it [sedan/hatch] is an important segment for us.”
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