Audi 2007 Annual Report Download - page 170

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A further deterioration in the U.S. car market is expected in 2008. The overall market vol-
ume of 16 million units sold will probably slip below the previous year’s total due to the
weakening of consumer spending.
The Asia-Pacific region will again enjoy strong growth in demand in 2008. The Chinese
car market, in particular, will continue to expand and should reach nearly 6 million units –
a growth rate of 17 percent. The rate of growth forecast for India is even higher at around
19 percent, bringing the total to 1.4 million passenger cars. In contrast, new registrations in
Japan will rise only marginally to just under 4.5 million passenger cars.
Increasingly intensive competition within the automotive industry and the ailing health of
the economy will again pose major challenges for the Audi Group in 2008. An even greater
effort will therefore be required to repeat the economic successes of the past. Management
is nevertheless convinced that the Audi Group will be able to build on the outstanding re-
sults for 2007 and post positive overall results for its business activities in fiscal 2008.
Anticipated development of vehicle sales
The Audi Group will sustain growth in vehicle sales in 2008 and plans to improve signifi-
cantly on the previous year’s record figure by selling more than 1 million Audi vehicles.
A large number of new models and derivatives, as well as those products with an estab-
lished market presence, should aid the core Audi brand in accessing new customer seg-
ments and give the brand’s appeal a long-term boost.
In its home market of Germany, the highest-volume market for Audi vehicles, the brand
with the four rings is striving to improve its market performance. Audi believes that it is well
equipped for further success in Western Europe, despite intensive competition there, and
expects to achieve growth in the face of a generally downward market trend.
Audi expects that the new markets in Central and Eastern Europe, and especially Russia,
will continue to provide strong impetus for growth.
Audi is aiming to strengthen its image and market position in the U.S. by further extend-
ing its exclusive dealer network and launching new, attractive models. The market launch of
the new Audi A4 will provide vital impulses here.
In its largest export market, China, Audi intends to continue to benefit from market
growth and to strengthen its position of leadership in the premium segment. The locally
built long-wheelbase version of the Audi A6 will play an important role in these plans.
Audi expects to see positive overall development of unit sales in Japan and the other
markets of the Asia-Pacific region.
The Indian automotive market, where Audi began local CKD assembly of the Audi A6 in
2007, will be playing an increasingly important role.
Anticipated financial performance
The Audi Group will see a further rise in revenue in fiscal 2008 as a result of the higher sales
figures it is targeting.
Based on the renewal and expansion of the product portfolio, the development of the ex-
clusive dealer and service network and further improvements in productivity and processes,
the Board of Management expects to see profits for 2008 rise in line with unit sales and
revenue.
A
nticipated development of
the Audi Group