Audi China marketers on launch of new EV brand

In early November, Audi made a bold move by unveiling its new electric vehicle (EV) sub-brand, Audi (spelt out in block letters as AUDI and without the four rings in the logo), specifically designed for the Chinese market. The vehicle is a large electric SUV with 764hp and features an AI-based infotainment system.

The announcement quickly captured attention on Chinese social media, igniting discussions about the changes. To further elevate the brand, Audi also appointed Chinese tennis star player and Paris Olympics gold medallist Qinwen Zheng as the face of this new venture. This strategic decision is aimed at connecting with a younger audience. Both Tsang and Ahuja emphasised that having Zheng representing the brand, which is guided by its brand identity rather than being solely driven by business considerations. 

Following the unveiling of its new brand and ambassador, Campaign spoke with Katy Tsang, executive vice president of sales and marketing for Audi China, and Rahul Ahuja, head of marketing and brand. 

When asked about the new four-letter logo, Tsang emphasised that it is a brand born out of Audi's DNA with a fresh identity rooted in the brand's legacy of over 115 years. Both the four-ring and four-letter brands will coexist.

Ahuja explained it required months of work to launch a completely new brand. This included nailing down a theme colour (purple), a new slogan (‘When motion meets emotion’), and executing collaborations including one with Grid Coffee where a new drink was launched through tours across China. It’s clear that the new EV brand is attempting into the mindset of a younger generation of car-owners. 

Since becoming the first luxury foreign car brand to enter mainland China market in 1988, Audi has maintained a strong presence in the market. However, it’s a tricky period to be penetrating China’s EV market with BYD, Tesla, and Volkswagen dominating the top-three spots in 2023, based on a survey.

Audi’s new EV launch aligns with emerging opportunities in China, especially following the government's introduction of new regulations for automobile trade-in subsidies in April this year. This trade-in initiative is becoming a significant growth area in the market. 

Recent research from Hakuhodo Shanghai shows that EV users under 35 prioritise price and technology, while those aged 35 and above are more focused on safety and brand image when considering a trade-in. As of June 2024, the national ownership of new energy vehicles in China reached 24.7 million units, indicating that the new energy exchange market is starting to take shape.

Campaign: Chinese social-media users were surprised to see the EV brand no longer features the four-ring logo. What prompted this change?

Tsang: From the vehicle’s point of view, you will immediately know it's an Audi when you see it, feel it, and drive it. We discussed this internally a lot. What would be the right logo? We went back to our heritage. We have actually gone back to where Audi started. 

Audi was the original name of our founder. Now, we wanted to be truly Audi, so we leveraged the name in capital letters for our new brand. We wanted to make sure that when people see it, they see something new, but yet they clearly see an Audi. What’s important is that we are not replacing the four rings. It stands side-by-side with the four rings brand.

Why has Audi made this decision now? Is it too late and risky to enter the highly competitive EV market in China?

Tsang: The Intelligent Connected Vehicle market is developing very fast in China. The entire automotive industry in China is going through the biggest transformation that we have ever seen. This transformation is not only happening in China but is also setting the pace for the global automotive industry.

With every transformation, there are opportunities and risks. But I think when we look into the Chinese market, be it in the total market or the premium market, we will see solid growth in the next five to 10 years.

With that, we see major opportunities. With this fast-growing market, we are also taking the leap to capture new customer segments. Our focus with the new brand is on innovation, focusing on reaching those much younger, even more tech-savvy customers.

How long does it take to prepare such a series of marketing campaigns?

Ahuja: We [rounded up] a small group of experts with passion for Audi and the Chinese market to build this brand together. It was obviously a short time, comparatively speaking, to a usual case of building a new brand. We were clearly operating at ‘China speed’.

We also intended to build the brand holistically. What does it mean? We started with our customers. We're not fishing in the same pond with the four rings as we want to tap into a new market of younger and more tech-savvy people. Based on insights, we empirically built the design of the brand. Everything that you could feel and see in our launch campaigns, on our social media, and especially at our launch events, is the result of this. The new brand’s character is based on the target audience insights.

Based on the brand design, concept, and strategy, we moved to the question of who could represent our brand—our storytellers. We recently launched the teaser of our making-of documentary.

How can Zheng Qinwen embody the brand’s new spirit?

Ahuja: There was a discussion internally that Zheng Qinwen really represents what progress means at the heart of Audi. She does not just follow someone else's footsteps. She has created her own path. We have three brand values for our new brand—pioneering, courageous, and expressive. And she really, without a doubt, represents all those brand attributes.

Having met her personally various times, we really feel the authenticity that she brings. She's truly herself in every interaction. She has also been shaped by her Chinese roots, but at the same time, she's enjoyed global training and plays at a global stage.

What transformations can we expect in the EV brand’s marketing and differentiation strategies?

Ahuja: We are not just bringing in a new brand as an option. There are many options in the Chinese market for consumers. We decided that we wanted to found a new brand, with a new design, new technologies, new platform, new products. We really want to benefit the industry and bring a new value proposition to the Chinese market. In terms of brand appearance, we do have a signature colour—purple – bringing together the iconic Audi colours of red and blue. We have our signature design element of the kinetic shift, which you can see in all our visuals. We also have our own imagery style.

Tsang: In addition, I think that the most challenging but also the most fun task that we have is in marketing. How do we market these two brands in parallel? On one hand, we need to build and market Audi with four letters as a new brand. But at the same time, both brands are closely interlinked with each other. Our customers for the four-ring brand and our customers for the four-letter brand actually belong to the same family, and it gives us a lot of inspiration and opportunities. With the industry and market that we have in China, I think our biggest task is really catching up.