Audi's New China Brand Struggles as E5 Sportback Slashes Prices to Boost Sales

Audi launched its new sub-brand “AUDI” in China in 2024, co-developed with SAIC Motor. The brand initially garnered over 10,000 pre-orders for its debut model, the E5 Sportback, but sales have since significantly slowed. According to Chinese EV data tracking platforms, cumulative deliveries of the E5 Sportback reached only 7,070 units as of January this year, with just 420 units sold in January alone. To stimulate demand, Audi has introduced a total incentive package worth RMB 30,000 (approximately USD 4,400), including purchase tax subsidies, cash discounts, and trade-in allowances, lowering the starting price to RMB 205,900. The vehicle is available in two variants: a single-motor rear-wheel-drive version (295 hp, CLTC range of 618 km) and a dual-motor Quattro high-performance version (776 hp). Although the revised pricing now positions the E5 Sportback competitively against popular models like the Zeekr 007 GT and Xiaomi SU7, and flexible financing options are offered, Audi still faces significant challenges in reversing its fortunes amid intense market competition—even with an upcoming SUV launch on the horizon.