AIMS: Audi's A1 takes the stage

RS5 and R8 Spyder were out the front, but it was the diminutive A1 capturing all the attention on Audi's stand
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Audi's two new model releases at the Australian International Motor Show (AIMS) covered both ends of the market.

At the high end was the A8 L, a longer-wheelbase variant of the large, luxury car games with a 13cm stretch and the choice of three engines. At the low end of the market but potentially more important, was the new A1. The new hatch represents the future for the Audi brand -- particularly in Australia. Since 2004, the local market has been a happy hunting ground for Audi, with sales increasing every year without fail. The introduction of the accessible entry-level model will add further momentum to the company's sales volumes.

"[A1] should be the strongest car in our [product portfolio]," said Audi's local MD Uwe Hagen. "It's our entry model now... I think $29,900 is an offer, which is really reasonable."

The sub-$30K figure is the starting price for the new model range. Hagen, who admittedly has only been in the job for seven months, doesn't recall Audi ever selling a car here for under $30,000. We believe that at some point in the past there must have been an Audi selling below that point, but that time was probably back in the early 1980s.

In conversation with journalists after Audi's presentation at AIMS, Hagen stated that the A1 would kick off with a 1.4-litre model, but other drivetrain options would subsequently follow, including at least one diesel variant. Hagen didn't put paid to the possibility that the diesel variant in question might be a TDi e model, with auto-stop and a low carbon-footprint engine.

"I mentioned that this car is an entry-[level model], so new customers; that means those customers [must come] from other places..."

So Audi may be contemplating a MINI D/Prius/Fiesta ECOnetic rival for the Australian A1 range. Hagen wouldn't elaborate and nor would he confirm for the local market other variants such as the five-door model and convertible in the wings -- but Audi being Audi, it's unlikely these variants won't be sold here.

How would the presence of the tiny car in the Aussie line-up impact on the brand's image -- one that has been founded on prestige (and expense)?
"Perfect," answered Hagen, "because you can see this with other models. I think a premium brand is driven top-down...

Hagen quoted a member of Audi's board of management who stated that a premium product needed "admirers". A well-positioned entry-level model, logically, will convert admirers to brand "participants".

Audi plans to put a finance package on the table for A1 buyers when the car goes on sale locally from December of this year. The idea, according to Hagen, is to ease the hip-pocket pain of entry to the world of Audi ownership -- not that the $29,900 asking price for the basic A1 is very steep in current terms.

But Audi is making sure the acceptance of the A1 by its target buyer demographic will be a matter of form.

"Currently our best-selling car is the A4, by volume. But we are convinced the A1 will... sell more.

"With premium brands you have high loyalty... so the earlier you can get people into your range, the better it is."

"It fits the market," Hagen explained when the Carsales Network asked him why the A4 outsells the A3. He principally believes that the A4 is a better package (by size) for Australian buyers, but the MD insinuates that the A4 is a car that Aussies associate with the prestige of the Audi brand to a greater degree than is the case for the A3.

That being so, why should the even cheaper, even smaller A1 outsell the A4? In essence, it's about the social climbing of young, aspirational buyers -- something that BMW exploited in the same way with the 318i from the 1980s, although Hagen says that, in his opinion, the MINI is now the new entry-level BMW.

That supports his contention that a quirky small car can be a volume-selling success story. And like the MINI, the A1 will likely reach the local market with a wide range of accessories, provided they meet the demands of global markets. Audi in Australia is already confident the A1 will sell like wildfire here, says Hagen, because the social networks on the internet have been abuzz with news of the new car since it was announced for the local market.

The A8 L that was also unveiled in Sydney will be available with three engines: a 4.2-litre direct-injection petrol V8, a 4.2-litre turbodiesel V8 and a 3.0-litre turbodiesel V6. All three engines drive through ZF's eight-speed automatic transmission. The long-wheelbase variants will go on sale in the first quarter of next year, with pricing and specification to be announced at that time.
For our full coverage of the Australian International Motor Show in Sydney visit our minisite at carsales.com.au/aims

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