Audi Sharply Reduces Price of Its Chinese Electric Car E5 Sportback
When Audi launched a separate brand, AUDI, for the Chinese market without the traditional four-ring emblem, it hoped for success. However, a few months later, it became clear that the market did not accept the novelty, and the automaker was forced to resort to a sharp price reduction to stimulate demand.
Key Facts About the Situation
Sales Launch and Initial Results
Deliveries of the first model, the E5 Sportback, developed jointly with Chinese partner SAIC, began in August 2025. The initial price ranged from 235,900 to 319,900 yuan. On paper, the car had good specifications and the potential to interest local buyers, who are increasingly choosing domestic brands. However, reality turned out to be different.
New Price Benchmark
Total sales for the entire period amounted to only 7,070 units, and in January, only 420 cars were sold. In response, AUDI announced a temporary discount, reducing the price by 30,000 yuan. This lowered the starting cost to 205,900 yuan, which is less than $30,000.
According to Car News China, buyers are offered a purchase tax compensation of 10,000 yuan, a cash discount of the same amount, and a subsidy for scrapping an old car for another 10,000 yuan. Favorable financing terms are also available.
Tough Market Competition
After the price reduction, the E5 Sportback found itself in the same segment as models like the Zeekr 007 GT, and slightly cheaper than the Xiaomi SU7, which sold over 250,000 units last year. The Chinese market for electric sedans and liftbacks is extremely saturated.
Technical Specifications Are Not to Blame
In terms of its parameters, the E5 is not a weak model. It has a long wheelbase of 2950 mm, power up to 776 horsepower, and a range of up to 480 miles on the CLTC cycle. Every trim level is equipped with a lidar, three radars, 11 cameras, and 12 ultrasonic radars. The interior is dominated by a panoramic screen measuring 59 inches in length.
Why Weren’t Buyers Interested?
It remains unclear why Chinese drivers are ignoring the E5 Sportback. This happened despite Audi reporting 10,000 pre-orders within 30 minutes in September, and the model recently receiving the “Car of the Year in China” title. The price reduction campaign is set to last until March 31, but there is every reason to believe it may be extended if sales do not pick up.
Trend Among Premium Brands
Audi is not the only Western premium brand forced to reduce prices in China. BMW and Mercedes have also been forced to lower recommended prices by 10 percent to compete in a market that is so aggressive that less than a third of dealers made a profit last year.
The situation with the AUDI E5 Sportback vividly illustrates the difficulty for global brands to penetrate the Chinese electric vehicle market, dominated by local manufacturers offering high-tech products at competitive prices. Even significant investments in developing a region-specific model with unique design do not guarantee success. The key factor becomes not only price or technical equipment, but also a deep understanding of local preferences, marketing strategies, and the speed of response to market changes. The future of the AUDI brand in China now depends on whether it can find the right balance between premium status and affordability in the fierce battle for the customer.