SAIC MOTOR(SH:600104) Guan Cha Zhe Wang·2025-08-21 00:42Core Viewpoint - The AUDI brand is facing the challenge of how to help consumers understand, trust, and accept it, especially with the introduction of the new AUDI brand logo and the E5 Sportback model [1][20]. Group 1: Brand Introduction and Market Positioning - In November 2024, AUDI launched a new brand in China, distinct from the classic four-ring logo, which has created a sense of unfamiliarity among consumers [1]. - The pre-sale price of the E5 Sportback ranges from 235,900 to 319,900 CNY, positioning it competitively against new domestic car manufacturers [1][3]. - The E5 Sportback's pricing strategy deviates from traditional luxury brands, offering numerous standard features and advanced technology, which may surprise consumers [3][5]. Group 2: Technological Advancements - The E5 Sportback is built on the Advanced Digitized Platform developed in collaboration with SAIC Group, leveraging local expertise in new energy and intelligent connectivity technologies [5]. - The vehicle features an 800V electrical architecture, a CLTC range exceeding 700 km, a high-power dual-motor system, and advanced driver assistance capabilities [8]. - The design of the E5 Sportback showcases unique aesthetics and high-quality materials, setting it apart from traditional offerings [10]. Group 3: Competitive Analysis - The E5 Sportback's specifications, including a CLTC range of over 600 km across all models and a complimentary advanced driver assistance system, enhance its competitiveness [13]. - Compared to similar models from competitors like NIO, the E5 Sportback offers superior value in terms of technology and pricing [13]. - The brand aims to attract younger consumers and regain market share in China, where sales have declined significantly [20]. Group 4: Consumer Perception and Brand Strategy - The absence of the four-ring logo leads to a perception of AUDI as a new brand, which may require time for consumer acceptance [18][20]. - The brand's strategy focuses on delivering strong sales performance with the E5 Sportback to establish consumer recognition and trust [20]. - The ongoing decline in sales, with a 10.9% drop in 2024 and a 10.2% drop in the first half of 2025, underscores the urgency for AUDI to adapt and innovate in the Chinese market [20].