Core Viewpoint - Audi plans to increase its long-term annual sales target to 2 million vehicles, representing a nearly 20% increase compared to 2024, indicating a strategic shift after years of declining sales [1] Group 1: Sales and Market Expectations - Audi's optimistic long-term outlook is partly based on higher expectations for the U.S. market, which is the second-largest automotive market globally, following China [1] - Currently, Audi's annual sales in the U.S. are approximately 200,000 vehicles, with expectations to nearly double this figure [1] - Despite potential growth in the U.S. market, achieving the 2 million annual sales target will require more than just reliance on the U.S. market [1] Group 2: Recent Sales Performance - Audi's global sales fell by 11.8% year-on-year to 1.67 million vehicles last year [1] - Even if U.S. sales were to double, Audi's total annual sales would still struggle to exceed 1.9 million vehicles [1] - In the first half of this year, Audi's sales in China, which accounts for nearly 40% of its global sales, declined by 10.2%, totaling 288,000 vehicles [3][4] Group 3: Challenges in Key Markets - Audi faces significant challenges in both the U.S. and Chinese markets, including the impact of high import tariffs and competition from domestic electric vehicle manufacturers [3][4] - The company has not established a production base in the U.S., making it vulnerable to tariffs, which have cost Audi nearly 600 million euros (approximately 4.99 billion yuan) in the first half of this year [1][3] - In Europe, Audi's sales outside Germany fell by 4% in the first half of the year, with the report citing a "soft" electric vehicle market as a key reason for the decline [4] Group 4: Strategic Initiatives - To address its challenges, Audi has accelerated its electric vehicle transition, including a joint venture with SAIC to create a new "AUDI" brand [4] - However, this strategy has led to internal competition within the brand, complicating its efforts to maintain sales in China [4] - Audi's delayed model releases and software issues have widened the gap with competitors like Mercedes-Benz and BMW, which have already established multi-power development strategies [4]