Posted by: Lucy Fu on 2009.05.14 18:22 in lucy fu

Chinese media reports say Audi's newly formed Beijing management company is investing in Chongqing. The auto maker has started promotions in the region including offering a free Audi A4L, priced at about RMB 298,000, to consumers who buy an Audi Q7, priced around RMB 1.65 million. The company has used similar promotion strategies in China's coastal cities, but Chongqing was the first central market to see buy one, get one free.

Audi insiders say the company is trying to expand into more second-tier cities in central China, as the management sees China as its most important Asian market. Audi's 2008 data placed west European sales down 8.9%, while Asia sales increased 16.7%.

Audi is not alone in trying to boost promotions in China. And, while auto companies tend to be some of the most revenue generating advertisers for China's new media sector, online ads aren't as effective in lower-tier cities. That means, ad spending for the new turf may end up offline.