Audi doubles down on electric cars for Australia following federal government actions

Audi says it is doubling down on its electric car future in Australia, but only with models that appeal to Australian tastes.

Prompted by federal government action on climate change that encourages EV uptake, cars and SUVs such as the Q4 e-tron due in early 2024 are being fast-tracked behind the scenes to give the German brand the strongest-possible footing with consumers.

Speaking at the launch of the SQ7 and SQ8 high-performance SUV flagship models in Victoria late last month, Audi Australia director, Jeff Mannering, admitted that Australia’s lowly position on Audi AG’s EV rollout priority list has proven to be challenging for the Sydney-based team, but now everything is moving forward at last.

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“Just the change of the government (has made a difference),” he revealed.

“Australia as a market doesn’t really have emissions targets. So, where the focus for (Audi AG headquarters in Ingolstadt) has been: ‘Where are the countries that you could get penalties, or there could be issues, with not meeting emissions targets? Where do we need to focus?’… (so it’s been) focussing on these markets.

“But the government now is putting incentives in.”

As we reported recently, models like the Q4 e-tron represent a new wave of EVs for Audi, given its dedicated EV-only architecture and the fact that its medium-SUV packaging appeals to the heart of consumers.

As a result, Mr Mannering said all stops have been pulled to expedite the release of the right EVs for Australia.

“So, the importance of EVs is becoming more of a focus in Australia, and that’s exactly how we’re positioning Australia as a market with the factory,” he said. “We’re saying: ‘Guys, now is the time…’ and I think (Ingolstadt HQ) is listening.

“From a strategy point of view, we actually need to say: ‘This car is right to bring to the market now.’ It certainly helps with targets for emissions, it puts more focus on Australia as an important market."

Mr Mannering admitted that the journey to EVs will not be easy, given the demand for them from much larger markets in the world.

“In the last week or two, we’ve had discussions in Germany, and we’ve pointed out: ‘Here goes the rollercoaster, and we need to be part of that rollercoaster.’ And whether it takes one month, 12 months or 24 months, it’s something we need to get our heads around.

The Q4 e-tron represent a new wave of EVs for Audi.

“You have to be in the game, or otherwise you’ll miss out. If we wait another three or four years without the product, we will miss the boat.

“It is our job to inform the factory (what the market is doing and the changes that are happening).

“If you look at some of the volume over in the last couple of months, I can tell you that exactly 21 per cent of (all premium vehicles) sold in September were BEVs.”

Mr Mannering also added that as a result of this, priorities have changed, and the pace is picking up.

“Actually, our message to the factory is: ‘Guys, the time is now, let’s get going.’

“Is any launch date confirmed? Not currently. But, from our point of view, we’re saying we need to get this going now,” he said.

Asked if Audi has left its run for too long in Australia, Mr Mannering remained upbeat.

EVs are expected to outsell ICE vehicles by the end of the decade.

“I don’t think you ever miss the market,” he said. “You don’t have to be first; you just need to make sure your product is the right product for the market.”

With Audi AG already announcing that it will not put any more money into the development of ICEs come 2030, Audi Australia is now well advanced to meet the challenges that lie ahead through the transition period.

According to Audi Australia product manager, Matt Dale, the end of this decade will probably when EVs will outsell internal combustion engined models in Australia, so the timing is perfect.

“They call it the tipping point and where that is for certain brands is in different time periods,” he said.

“Where we foresee it (for Audi Australia) is obviously within the next decade… but in general industry speak, we’re looking at about 2029 or 2030 where BEV tips over 50 per cent.”

Mr Mannering said that Audi Australia is now ready to meet whatever challenge the market or Audi AG head office poses.

“If you think where are we going and where is the crossing point, because you just can’t go from zero to bang in 2030, our transformation is starting now," he revealed.

“Consumers drive the industry and we have to supply the right cars.”