The 2010 Beijing International Automotive Exhibition (Auto China 2010) held this past May caused a stir and attracted waves of visitors. Automakers from both home and abroad all unveiled their “crown jewels”. Under the theme of “For a Greener Tomorrow”, environment-friendly electric-powered vehicles have undoubtedly become the focus of attention. Included on the list are Mercedes' F800style, Toyota’s Leaf and, Audi’s E-Tron.

E-Tron was to be heard of before it was seen. Audi, one of the major auto-makers introducing its new eco-vehicles at the exhibition, had already succeeded in familiarizing its targeted consumers with its presence through the tagline “未来 已来” (weilai yilai). The slogan faithfully follows the exhibition theme “Imagining a greener future” at the same time providing a perfect translation of its English version “The future is at present”.

In spite of the fact that environment-friendly electric-powered vehicles are presently dependent on government support through policies and subsidies, the general public are destined to shift their favor to electric power due to the soaring price of crude oil. Moreover, “greenness” not only reflects one’s moral responsibility for environmental protection, but has also gradually become a new trend.

However, it cannot be denied that the promotion of electric-powered vehicles is by no means smooth despite the various benefits they may bring. First of all, the electric-powered vehicle market in China is still immature, and corresponding infrastructure is yet to be perfected. Even in the metropolitan cities of Shanghai and Beijing, recharging facilities for electric-powered vehicles are far from sufficient. Furthermore, battery life is one of the weaknesses of electric-powered vehicles; they are still unable to generate enough horsepower to travel at high speeds and cover long distances. This technical deficiency could take months or years to solve. This could represent an opportunity for automotive brands to differentiate themselves based on superior technology as a first step to building their brand strength in this market.

In Audi’s case, they strived to build brand strength by abandoning their classic racecar model and offering a light, urban-based model. At first glance, it seems to be nothing more than another of Audi’s moves to cater to different customer needs. However, since the technical considerations are still a significant concern for potential purchasers of electric cars, this can be taken as a strategic step - a point of differentiation for car brands entering this market.

It should be noted that differentiation factors employed must also be relevant in order to build brand strength. When we look back on Audi’s strategic adjustment to the light and urban E-Tron, firstly we can find that the light weight helps improve slow acceleration. Secondly, positioned for urban driving, its deficiency in traveling distance is less obvious. Lastly, city traffic draws less attention to its poor performance in speed. Moreover, customers buy city cars for everyday use, and the long-term energy-saving capacity of electric-powered vehicles is undoubtedly a very attractive feature.

In essence, the current technology still limits electric-powered vehicles to the level of concept cars, making it difficult to mass produce them like hybrid vehicles. Nevertheless, the energy crisis, and the emphasis on environmental protection are all indicating the potential of electric-powered vehicles and their possibility to become mainstream in the future auto industry. Furthermore, although electric-powered vehicles are currently too costly to be highly profitable, the brand image of the car company itself can be enhanced simply by the fact that they offer an electric vehicle. After all, brands need to capitalize on trends in the market in order to stay relevant.