Glass ceiling for Lighthouse brand?

Audi Australia boss, Joerg Hofmann, says there's a limit to how many cars a luxury brand can sell Down Under. And his main competitors are already knocking on the glass sales ceiling.

Speaking at last week's launch of the new Audi Lighthouse, the company's marquee dealership and Australia headquarters in Sydney, Hofmann said he believed 18,000 cars was the limit a luxury brand could sell Down Under.

Answering questions related to Audi Australia's oft quoted aim to become the number one prestige brand Down Under, Hofmann stated he believed his company's '15,000 units by 2015' target would give Audi the upper hand in the luxury segment.

And the local boss was backed by Audi AG board member and global head of sales and marketing for the brand, Peter Schwarzenbauer, who was also on hand for the opening.

"We are now in Europe the No 1 premium brand... and in Australia we are, step by step, getting closer..."

Asked whether the brand would pass its German archrivals locally, Schwarzenbauer stated: "Yes definitely... Mercedes a bit earlier... BMW it may take a little longer but 2015 remains our goal."

Hofmann maintains his company's target of 15,000 cars per annum will be enough to displace the brands ahead of Audi. By definition, the other brands must therefore go backwards in the next five years.

"15,000 [local sales] is the first step... I believe we can even do more, but I always say there's a limit for a premium brand in Australia. I see that 18,000 cars a year, this is the maximum a premium brand can sell.

"[That is] Pretty much what happens at the moment with our two German competitors... Especially BMW is about that level and it gets harder and harder and margins start to get sacrificed and this sort of thing -- which we don't want," Hofmann opined.

"I believe the maximum for a brand like us would be 18,000 [cars per year]. This is the volume where you can just sell profitable cars [and] not be deteriorating the brand image," he said.

Last year BMW sold almost 17,300 vehicles Down Under while Mercedes moved more than 18,500 (including approx 4400 commercials). Audi posted a 2008 total of 9410 -- a record for the brand. To the end of July 2009, BMW's sales had topped 9400 units locally and Mercedes (including commercials) was sitting at 10,827. At 6554 units Audi is over 12 per cent ahead of the same time last year -- in contrast to BMW and Benz which are down 11.6 and 7.2 per cent respectively.

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