Audi February Car Sales Rise 20%, Fueled By China

Luxury car maker Audi AG (NSU.XE) said Monday that global sales rose 20% year-on-year in February to about 75,900 vehicles as a 62% sales rise in China more than offset a 3.3% decline in its home market in Germany.

"We are on course for a strong first quarter ... (This is) mainly thanks to our leading position in China and Western Europe," Audi sales chief Peter Schwarzenbauer said in a statement. He noted that the premium brand and key earnings contributor of Volkswagen AG (VOW.XE), Europe's largest auto maker by sales, "is also performing very well in the U.S."

Sales in China, including Hong Kong, climbed to 15,108 cars last month compared with 15,647 vehicles in Germany. Audi's two-months sales suggest that China might outpace Germany as the brand's largest single market this year, underscoring a broader geographic shift among auto makers toward Asian growth markets.

In January and February, Audi sold 31,906 cars in China, up 86% year-on-year, compared with 27,304 cars in Germany, up 1.7%. Audi previously has said it expects China to become its largest sales region in 2012 or 2013.

China proved to be one of the few bright spots for luxury-car makers when demand evaporated in other major markets amid the economic downturn and is now driving the segment's recovery.

Audi emerged from last year's industry gloom relatively unscathed and narrowed the gap to its larger premium-brand rivals BMW AG (BMW.XE) and Daimler AG's (DAI) Mercedes-Benz marque last year due mainly to its strong presence in China and a smaller exposure to the troubled U.S. market.

Audi ranks third in global luxury-car sales behind BMW and Mercedes-Benz, but it retains a firm grip on the top position in China, which it gained thanks partly to the early market entry of its parent company. Audi plans to launch its A3 hatchback in China this year and aims to ramp up local production as well as expand its dealership network.

Audi's sales totaled 43,127 cars in Western Europe last month, up 6% compared with the same period last year.