New Q7 points to simpler Audi range

Say so long to Q7s with diesel V12s and petrol V8s. The new Q7 will be limited, for the time being, to the one drivetrain – a 3.0-litre V6 diesel driving through an eight-speed automatic transmission.

Audi will later flesh out its Q7 range with the e-tron plug-in hybrid and a 160kW version of the diesel V6, but we're unlikely to see the broader range of drivetrain alternatives available in the past. It's a sure sign that Audi's generic halo car of the future will address environmental concerns and will make a virtue of high-tech fuel efficiency.

And there's nothing sinister about the Q7 going frugal, says Audi Australia MD, Andrew Doyle... it's just common sense.

"If you think about the previous range, I mean the dominant number of sales were the 3.0-litre diesel... that was the vast majority of the demand," Doyle told motoring.com.au during the local launch of the new Q7 last week.

But the obvious consequence is this: we're unlikely to see a V12 diesel Q7 again – at least until such time as sea levels begin to drop and average temperatures begin to come down. The V12 was great for the brand "from a halo effect" perspective, Doyle admits, but actual sales numbers were very small.

By comparison with the Q7 though, the new Mercedes-Benz GLE will draw on five different engines – including the 5.5-litre twin-turbo V8 in the AMG variant. And Stuttgart is not ignoring environmental considerations either, with diesels and a plug-in hybrid variant also set to be offered.

In Australia, Audi's global product plans – based on whatever rationale – may have an impact on the brand's on-going sales expansion. Reducing choice could turn away customers.

Doyle doesn't agree.

"I wouldn't say that there's a deliberate strategy to cut down the number of models," he responded. I think what we do try to do, which I think is good for residual value and for simplicity of the product offering for the customer... is to simplify our range."

Audi in Australia has been known for saturating the market with a plethora of models, numerous drivetrain variants and a barrage of options for each. It's perceived to be one of the key factors in the rise of the brand's profile here – along with continuing sales improvement year on year since 2003. Yet what Doyle says next suggests the brand is backing away from the strategy that seems to have served it well over 12 years.

"We're simplifying a lot of the range across the board, in our passenger cars as well, in terms of the model offering, but also in terms of the packages," Doyle said. "And I think that makes a lot of sense for customer choice as well, because you're really getting great value when you do that."

By determining what are the most popular options, historically, Audi's product planners can arrive at a sort of equipment list plateau, on which to build different variants (sport or luxury) and with different option packs.

"So we are offering, let's say, the most popular products in the package [as] a very good value [model line]. That's the idea."

While it appears to be an evolutionary tweak of standard product planning practice, it is a change of pace for Audi. According to Doyle it's an idea taking hold with the A1, A3, A4 and A5 ranges. But will it weaken Audi's sales and marketing efforts – and thereby delay its long-term initiative to be Australia's most popular prestige brand?

"No, I think it's the right strategy because simplification of product offering is actually much better for the customer," Doyle replied. "I mean more models don't necessarily mean better customer choice. We're really offering what the customer wants and you've also got to think about the used car market.

"So we don't think just about the first sale; we think about the second sale. So as far as residual value maintenance is concerned, that's a big, big driver for us, to make sure that we really look after not just the first sale but the second sale and potentially the third sale. And that's, that's what our long-term philosophy is: about product management, just to make sure that you're really maintaining the value and you don't have all types of different variants in the marketplace that can potentially upset what might be a strong residual value in the future."

It's a subtler message for the consumer and the press, and suggests that Audi Australia foresees its untrammelled sales growth levelling out without some means of addressing that one particular point of difference between it and other prestige brands: resale.

Resale is the one particular element that has the potential to hold back Audi from being Australia's most popular prestige brand. Just two months ago, Doyle was surmising that Audi could take top spot away from Benz within a five-year timeframe, but during the Q7 launch last week he was circumspect about the lead time for Audi outselling second-placed BMW.

"I'm confident that will happen. I don't put a timeframe on it. But I know that based on what we have achieved in other markets around the world that we will achieve it here in due course."

According to the latest VFACTS figures for July, Audi is currently sitting 1540 sales behind BMW for the year to date (13,103 versus 14,643). It's hard to see Audi picking up those extra sales (and more) before the end of the year. But returning to where this article began, don't count against the Q7. If it can double its sales as Audi expects – and factor in the pent-up demand for the new car translating to an initial surge in sales – that's at least half the current shortfall.

We await December VFACTS with bated breath.