German Automaker Audi AG announced that they have already exceeded last year's Chinese sales and expect to sell some 130,000 vehicles in the country before the end of the year.

The company reported delivery of 118,196 cars to China so far this year, a 22 percent increase over the same period last year.

The company cites the popularity of their A4 and A6 models as one of the reasons for improved sales. Audi A4 model sales have increased by 62%, while Audi A6 sales have seen an increase of 16%. Both models are produced at Audi's Changchun facility. 

Analysts also attribute the strong demand to the government's stimulus package and tax breaks on auto purchases.

Passenger vehicle sales in China between January and August rose 37% to 6.23 million units, according to the China Association of Automotive Manufactures, while total vehicle sales rose 29% to 8.33 million.

Future plans for the German automaker include launching their new A3 hatchback, in addition to the Q5 small sport-utility vehicle as part of a strategy to attract a larger Chinese customer base.

In a recent interview, Peter Schwarzenbauer, Audi's executive board member responsible for sales and marketing, predicted that Audi sales in China would reach 250,000 cars by 2012 or 2013. This would make China Audi's largest market, surpassing Germany.

Audi is also planning to broaden their leasing and financing business in a market where cars are traditionally paid with cash.

Links and Sources
Audi: Report on China Sales (English)
Business Week: Audi sees record cars sales in China in 2009
Wall Street Journal: Audi Sees China Sales Surpassing Germany by 2013