Audi AG is confident that orders for the new A1 subcompact would surpass the 50,000 units that it had planned to make this year. Volkswagen AG's premium brand said that the A1 is designed to appeal to rich young people, a target group that could revitalize the image of the brand. It could also be a way to build loyalty as its consumers buy more luxurious models.
In a statement, Peter Schwarzenbauer, Audi's head of sales and marketing, said that the high demand could lead to orders exceeding the production capacity this year.
You may already have seen Audi's advertising campaign online that shows Justin Timberlake trying to sell the car priced at 15,800 euros ($21,200) to fashion-conscious youngsters.
Audi believes that 90% of the customers would be first-time owners of Audi vehicles. Meanwhile, rival Mercedes-Benz had produced the A-class entry-premium compact.
Mercedes-Benz expects that a majority of those who would buy this model are existing Mercedes owners who mean to provide a second, smaller car to spouses or other family members.
The A1, which is based on the VW Polo architecture, isn't likely to be threatened by other premium German brands that actually don't offer a direct competitor.
BMW is represented in this segment by the Mini, which is priced from 16,600 euros in Germany. Meanwhile, Fiat's Alfa Romeo MitTo has an entry price (including tax) that is more than 1,000 euros below that of the A1 in Germany.