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Audi Looking To Pass BMW in Russia

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    On the strength of more Audi products made in Russia, VW is looking to pass BMW in sales in the country. Pictured: Audi Q5, now being built at VW's Kaluga, Russia, plant. | January 12, 2010

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Audi Looking To Pass BMW in Russia

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    KALUGA, Russia — Volkswagen has targeted a boost in its Audi sales in Russia — with the aim of passing BMW in sales terms — and reportedly plans to launch several new Audi models at the VW plant in Kaluga. According to Russian media reports, VW will launch the A6 and Q7 in Russia soon.

    VW started large-scale assembly of the Audi A4, A5 and Q5 SUV at Kaluga in November. With the A6 and Q7, these are Audi's most popular products in Russia, accounting for more than 80 percent of total Audi sales in the country.

    Volkswagen reportedly believes that the growth in Russia will let it pass BMW in sales and leave another important competitor, Mercedes-Benz, far behind. Since the beginning of the recession, Audi has shown the smallest decline among the three German premium auto brands in Russia, dropping only 11 percent compared with a 16 percent decline for BMW sales and a 32 percent drop for Mercedes-Benz. Despite the numbers, BMW has remained a leader in the premium segment here and thus, a target for VW to aim at.

    Local analysts are saying VW's Russia strategy differs from those of foreign automakers with their own factories set up here. Most of them focus on the production of one or two models, while VW is offering a wide — and growing — model range with a presence in virtually every price segment.

    Inside Line says: VW's Russia strategy appears well suited to letting it adapt to changing market conditions. — Evgeniy Vorotnikov, Correspondent

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