Audi 2014 Annual Report Download - page 192

REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES
REPORT ON EXPECTED DEVELOPMENTS
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The Asia-Pacific region is once again likely to be the main driver
of rising worldwide demand for cars in 2015. The growth trend
in new registrations should be maintained, albeit at a slower
pace, thanks to China’s still comparatively low vehicle density
and rising demand for mobility. In Japan, we expect to see a
fall in demand for cars.
// MOTORCYCLE MARKET
For 2015 we are expecting a moderate rise in demand for
motorcycles in the markets above 500 cc that are relevant for
the Ducati brand. Demand in the established markets should
benefit from the slight improvement in the overall economic
picture. We anticipate higher market growth in emerging
economies as a result of rising demand for high-displacement
motorcycles and continuing economic growth.
/ OVERALL ASSESSMENT OF THE ANTICIPATED
DEVELOPMENT OF THE AUDI GROUP
The Audi Group expects global economic growth to continue in
2015. The upturn is likely to gather momentum somewhat
compared with last year. From our perspective, the main chal-
lenges are primarily variations in economic development and
the difficulty in making forecasts on the economic environ-
ment, especially in light of the many political conflicts around
the world. Added to this are a noticeable increase in the inten-
sity of competition in key markets and the technological shift
taking place within the automotive industry towards alterna-
tive drive concepts, in particular in order to meet internation-
ally tougher CO2 requirements. Furthermore, the progressive
connectivity and digitization of society necessitates the further
development of business models throughout the industry.
As part of its strategic objectives, the management of the
Audi Group has defined and implemented numerous measures
designed to build on the Company’s strong competitive posi-
tion. These also included the Audi Group’s approval of the
biggest investment program in the Company’s history at the
end of 2014, its particular objectives being to strengthen
strategic areas of innovation and further expand the global
production network. The Board of Management considers the
Company to be well equipped to handle current and future
challenges effectively and thus maintain its course of qualita-
tive growth over the coming years.
// ANTICIPATED DEVELOPMENT OF DELIVERIES
In 2014, the Audi Group delivered more than 1.7 million cars
of the Audi brand to customers worldwide. The Company also
established new sales records in over 50 markets. We intend to
maintain our course of growth in the current fiscal year and
significantly increase deliveries of the Audi brand. Our objec-
tive is to further increase market shares in major sales markets
and reinforce our strong competitive position in the premium
segment worldwide.
In Western Europe, the brand with the Four Rings is aiming for
slight growth in vehicle sales in order to secure its leading
position in the premium segment. The strained economic situa-
tion in Russia and continuing political uncertainty in Eastern
Ukraine are likely to curb demand for cars in Central and Eastern
Europe in 2015. The Audi brand cannot avoid this development
entirely. We expect the volume of deliveries for the region to
be slightly down on the previous year. In North America, we
aim to maintain our course of growth and achieve a healthy
increase in deliveries, especially in the United States. Above all
our favorable image and prestige ratings, the expansion of our
exclusive dealer network and our continuing diesel initiative
are having a positive impact on demand. We also expect clear
growth in China, our largest single market worldwide. The
gradual broadening of our locally built model range should
stimulate sales.
In response to our global growth we are adding a large number
of new models and derivative versions to the attractive Audi
model range. The brand with the Four Rings already has an
extensive product offering extending from the compact Audi A1,
through the SUV family – Q3, Q5 and Q7 – to the R8 supercar. In
an increasingly intensive competitive environment, we plan to
boost the appeal of the Audi brand even further in 2015 with
innovative and emotional vehicle concepts. Following the
appearance of improved A6 and A7 car lines in the second half
of 2014, the revised models of the A1 and Q3 families also
went on sale recently. Furthermore, the Audi TT Roadster,
TTS Roadster and TTS Coupé have been added to the TT car line.
On top of this, the A3 compact family will see the arrival of the
sporty top model Audi RS3 Sportback later in the year. In the
full-size category we unveiled the new Audi Q7 in January 2015.
This model will be introduced gradually in the markets from
mid-way through the year.