Audi’s bold gamble exposed

Audi’s Dual Strategy for the New Q3 Range

Audi is taking a bold approach with its new Q3 range, aiming to cater to a wide spectrum of customer preferences. The brand is set to introduce both a high-performance RSQ3 and a more fuel-efficient plug-in hybrid variant. This dual strategy reflects Audi’s commitment to meeting diverse market demands while maintaining its reputation for innovation and performance.

At the launch of the new Q3 range, which includes 110kW, 150kW, and 195kW variants, Audi Australia management has hinted at additional options in the pipeline. While the RSQ3 has not been officially confirmed, Matthew Dale, National Product Manager for Audi Australia, has expressed strong interest in the model.

“ We’d love one tomorrow,” he said. “Definitely put our hand up for one.”

The Future of the RSQ3

The RS badge is expected to return for the latest generation of the Q3, but the form it will take remains uncertain. The previous generation of the RSQ3 was powered by Audi’s iconic five-cylinder turbocharged petrol engine. However, Europe’s strict emissions laws have cast doubt on the future of this engine. As a result, Audi may need to develop a new powertrain for the RSQ3 that balances performance with efficiency and emissions requirements.

Despite the potential changes, there is a strong demand for the RSQ3 in Australia. In the previous generation, the RS model accounted for up to 15 per cent of total Q3 sales. Audi Australia is likely waiting for confirmation from head office before making any public commitments.

The Plug-in Hybrid Variant

On the other side of the equation, Audi is finalizing the arrival of the all-new plug-in hybrid (PHEV) variant of the Q3. The omission of this model was notable, given the current climate of high petrol prices and increased demand for electric vehicles. While the PHEV is currently under ‘evaluation,’ signs point to its imminent arrival.

“ The main reason for that is, obviously, the latest generation Q3 we locked in all of our ICE models,” Dale explained. “We just want to make sure that, one, the product that’s available in Europe is fit for the Australian market and Australian consumer. Two, it’s been tested for Australian conditions as well. And three, it’s the latest generation of the product. So it’s close to getting to the end of its evaluation and getting a decision, but we just want to make sure that all three of those areas are ticked prior to bringing a product to market.”

Electric Driving Range and Battery Technology

Dale is confident that the new PHEV model, which reportedly boasts up to 100km of EV-only driving range, will be a good fit for the Australian market. He highlighted the rapid advancements in battery technology.

“No, the big thing is that space is moving so, so quickly with, say, battery technology,” he said. “Not necessarily the hardware components of the actual PHEV itself, but with battery technology, it’s moving so, so fast, and that’s something that we’ve obviously shown in, say, A5 and Q5, is the latest generation products. We’ve moved from having, say, 30-40km range in a battery pack that is essentially the same size as today, up to closer to 80km of pure EV range. And that shows that, we’re using the same hardware size, but the hardware inside and the software has been increased exponentially over that period of time to offer the latest products to Australian consumers, and I think that’s where we’re looking into to ensure that if we position a vehicle in the market, that we’re bringing the latest product to Australia.”

Expanding the Appeal of the Q3

The addition of a Q3 PHEV would help expand the appeal of the popular small SUV to people looking to save money at the petrol pump. With recent surges in fuel prices, interest in electric vehicles has dramatically increased, which is good news for Audi. The brand was one of the first luxury brands to make a major commitment to EVs.

“ Definitely [seen an increase in EV interest],” Dale said. “We’ve seen, even through our dealer network and our partners that invest in our Audi dealerships, they’re basically saying that just inquiry on electric vehicles alone has been astronomical and it’s doing quite well. Hopefully we continue that momentum. But yeah, you can see based on, consumables like fuel prices and things like that, where the consumer pivots to alternative solutions and with our broad portfolio of plug-in hybrids and electric vehicles as well, even mild hybrid pluses and mild hybrids that we’ve got in this car as well, there’s quite a broad range of products where consumers can pivot and have broader options.”

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