'Of course' it will be a smash hit: After losing some ground in the electric car battle to the Tesla Model Y and BMW iX3, Audi is gearing up for an EV offensive starting with the Q4 e-tron

When asked if Audi’s next electric car, the Q4 e-tron, would be a smash hit in Australia, local Director Jeff Mannering confidently said “Of course”.

It’s a bold way to respond — especially from a luxury carmaker in the midst of a cost-of-living crisis with sales down 13 per cent this year — but Mannering says it’s all in the plan. 

Audi will launch a host of new models starting this year, effectively refreshing its entire range with either all-new models or facelifts. First up it’s the Q4 e-tron, which will be the best-selling battery electric vehicle (BEV) for the brand.

Key to its success will be sneaking in under luxury car tax (LCT) and fringe benefit tax (FBT) thresholds. “It’s a high-volume BEV because it’s a great price point. It’s below the FBT and LCT so it’s a different methodology of buying the car,” explains Mannering.

The entry-level Q4 45 e-tron lists at $88,300 before on-road costs, coming right for the BMW iX3 M Sport ($89,100) and smaller Mercedes-Benz EQA 250 ($84,900).

“If you look at the BEV market there’s particular volume, probably between $40,000 to $70,000 like the mass-market, the Chinese manufacturers and the new players that are coming in.

“We’re premium, so we’re competing in a different segment. The volume is less, but for us the [Q4] is going to be the best-selling BEV.”

 Audi was early to the electric car race in Australia but not in volume segments. Rather, it was the flagship Q8-sized (and now named) e-tron large SUV and sporty e-tron GT four-door. Niche propositions that showed what Audi could do at the pointy end.

The strategy may have seen Audi lose customers to aggressively priced rivals, including Tesla and BMW, which have maintained low prices in Australia to get new buyers. Again, there hasn’t been much for Audi to do about those two brands without new models.

Regarding the rival German brand’s strategy, Mannering said “Well, good luck to BMW,” admitting “I think they’ve done a pretty smart thing.” He also noted Tesla’s market disruption. 

“I think what Tesla did in the market was pretty successful. They’ve dropped their prices down now, they’ve got some issues that they’re dealing with,” says Mannering, alluding to unsustainably low prices for the American EV specialist.

“It’s interesting, what’s going to happen in the next 2-3 years when those [cars] start to come back to turn into a new one: what’s the experience going to be like?”

It’s a similar sentiment to other Volkswagen group brands, including VW itself and Skoda. Those using bricks-and-mortar dealers and offering guaranteed future value programs to ensure strong residuals for life-long customers — not something Tesla or BYD offer.

And although Audi sales are down, with the market rapidly emerging from supply restriction into excess stock, it might not be so bad to have fewer cars sitting around. At least for now,

“The market is tough at a retail level. People are really shopping around, it’s really competitive in the market, and between different manufacturers. A lot of manufacturers are keeping their factories going around the world and there’s a lot of stock here, a lot of stock,” says Mannering.

Audi is running out many of its current models to clear space though when asked if we could expect more discounts from Audi and the broader industry, Mannering joked: “There’s only a certain level you can get to because otherwise all the poor car companies will be asking our mum and dads for money.”

The Q4 e-tron is the first major product launch for Audi Australia, to be followed by the larger Q6 SUV. A facelift of the brand’s A3 small car is expected, while a new A5 will arrive to replace the current model and the combustion A4. Audi’s first electric sedan, the A6, is also due in Australia next year.