Can Audi, Cadillac find breakthrough in Korea with EVs?

Audi's Q4 e-tron electric SUV / Courtesy of Audi Korea

Audi and Cadillac are gearing up for potential sales rebounds with their strategic electric vehicle (EV) lineups in Korea, in an unexpected twist after they have suffered sales doldrums amid toughening rivalry in the premium vehicle industry here, according to data and company officials, Tuesday.

Local subsidiaries of the two once-touted luxury automakers have yet to recover their old glory, after the market for premium vehicles has in recent years started to be dominated by only a few players, such as BMW, Mercedes-Benz and Genesis.

But Audi and Cadillac are seeking to break through the rivalry with a strategic focus on their EVs, as the industry is still in a transition period after entering an early chasm phase.

Audi Korea is attracting favorable market responses with its Q4 e-tron electric SUV. The compact EV is serving as a key sales driver for the company. According to the company's data, 325 Q4 e-tron EVs were sold in April here, the largest sales among all imported German EVs. The lineup has been the top-selling German EV for two consecutive months since March.

“The vehicle is enhancing its position as one of the most beloved imported EVs here, driving the popularization of premium EVs, as it met demands from local customers in multifaceted areas, such as large indoor space and decent mileage performance,” an official from the company said.

The LYRIQ electric SUV is displayed at its showroom in Seoul in this file photo. Courtesy of Cadillac Korea

Cadillac Korea is also betting big on the premium EV market, having recently launched its first-ever EV, the LYRIQ.

Cadillac is an iconic American premium auto brand which enjoyed its heyday here in 2018 when it sold around 2,100 vehicles. But its sales figure plummeted to 975 in 2023, as more customers opted for German counterparts and Genesis.

Cadillac expects the vehicle to help rev up its falling sales here, as the initial response for the vehicle remains robust. It typically takes more than a year for customers to receive their vehicle after placing an order.

The rise of imported EVs poses a growing threat to two home-grown players, Hyundai Motor and Kia. According to data from the Korea Automobile & Mobility Association, imported EV sales jumped by 102.9 percent for the first four months combined this year, while that of domestic EVs suffered a sharp decline of 32 percent during the same period.

Hyundai Motor and Kia are placing their focus on defending against the burgeoning rivalry from imported carmakers by releasing cheaper lineups, including Kia’s EV3 compact electric SUV.

Hyundai Motor also plans to launch an electric version of the Casper compact SUV by the end of this year to drive the popularization of EVs.

“Competition will remain fierce among imported and domestic carmakers to attract more customers in the market for smaller EVs, as the industry faces cyclical slowdown and customers remain price-sensitive due to prolonged high interest rates,” an official from an imported carmaker here said.