Audi shelves A6 and S6 e-tron for Australia

AUDI AUSTRALIA has cancelled plans to introduce the A6 e-tron and S6 e-tron premium midsize battery electric vehicles (BEVs) in Australia, concluding that releasing the models would not make commercial sense in the current incentive environment.

The electric versions of the A6 sedan and Avant station wagon are based on a new Audi/Porsche PPE BEV platform and are offered in rear-wheel drive or all-wheel drive guises—including the 370kW S6. Planning for their introduction to Australia was advanced and the vehicles had been previewed in-country.

However, Audi has also developed a mechanically distinct internal combustion version of the new A6 with petrol, diesel and plug-in hybrid (PHEV) engines, and this line-up is still under review for Australia.

The electric versions of the A6 sedan and Avant station wagon, badged ‘e-tron’ to match Audi’s other BEVs, debuted in Europe last year and have been positioned in that market as strategic additions to the Ingolstadt-based manufacturer’s passenger car portfolio.

However, local Audi Australia executives have observed the discounting of key segment rivals and cite the nearly complete coalescence of EV demand beneath the luxury car tax (LCT) threshold of $91,387 (before on-road costs) as the prime motivation for avoiding the introduction of the A6/S6 e-tron pair.

The primary EV purchase incentive in Australia is a full exemption on pre-tax novated leases from fringe benefits tax for fully-electric cars—a sizeable advantage for buyers—but the EV cannot cost more than the LCT threshold.

“While we’re incredibly proud of what A6 e-tron represents, our decision not to bring it to market at this time is based on ensuring the right fit for our customers here in Australia,” Audi Australia brand director Jeff Mannering told GoAuto.

“The segment for large luxury passenger cars remains very niche,” said Mr Mannering.

Of particular concern to Audi is the ability to protect the profit margins of itself and its dealers in a context where key rivals, such as the BMW i5 and Mercedes-Benz EQE, are understood to have often required heavy retail discounting in order to shift units from showroom floors.

While BMW has delivered a respectable 403 examples of the electric i5 in Australia this year (compared to 288 petrol and diesel 5 Series’), GoAuto is aware some i5 examples have transacted for less than the $91K LCT threshold—a substantial markdown from the base grade’s $155,900 list price.

The key difference is that, while petrol and diesel versions of the 5 Series also attract premium six-figure pricing, the degree of discounting to shift them is understood to be considerably lower.

An Audi Australia spokesperson affirmed that an “enhancement to BEV incentives such as extending them beyond the current LCT threshold would be welcomed” and confirmed such a move would “increase the likelihood of introducing more premium EV options to the Australian market.”

The German brand has left the door open to revisit its A6 and S6 e-tron decision later if the local demand situation shifts.

Swedish rival Volvo will shortly launch its ES90 premium BEV sedan in Australia, and it has attacked the LCT threshold impediment differently by specifying a pared-back variant priced at $88,880 plus on-road costs—well below the limit.

Meanwhile, BMW has sold a considerable volume of its entry-level i4 BEV sedan model, which is priced at $88,900 plus on-road costs. Audi sells versions of its Q4 and Q6 electric SUV models for below the LCT threshold but it has declined to specify a sub-LCT version of the A6 e-tron.