There is currently a growing and significant consumer demand for fuel efficiency in the automotive market. Fuel efficiency is a growing concern for the modern consumer; this has led to the penetration of hybrid and electric cars in the automotive market. The Audi Group is a German automotive manufacturer (owned by the Volkswagen Group) that designs, engineers, produces and distributes luxury vehicles. Audi's mission translates to "We delight customers around the world". (AUDI AG, 2014). Audi aims to provide fuel-efficient luxury cars. Audi is a dominant brand in the New Zealand market; with Audi sales growing by around 25% compared to last year (McNicol, 2013) it is obvious that the demand for luxury cars is significant. The growing demand for fuel efficiency creates a growth opportunity for Audi. Market AnalysisAudi produces luxury cars for a small but significant niche market. The luxury car market caters to high-income individuals with disposable income. The luxury car market is peaking with a large amount of high-income people investing in luxury vehicles, especially in the New Zealand market where luxury car sales are outpacing the growth rate of the passenger car and SUV markets (McNicol, 2013). Consumer trends in luxury car markets show a growing demand for hybrid and fuel-efficient electric cars. Competitive Analysis Audi together with BMW and Mercedes-Benz constitute the three best-selling luxury car brands in the world. BMW is one of Audi's biggest competitors; BMW has a strong and loyal brand, created by the consistency of high-quality products. BMW has also created a strong brand image, many customers purchase BMWs to be connected to the idea of ​​wealth and class associated with the brand. BMW, unlike Audi, has not so quickly embraced...... middle of paper......nefit Audi. Audi can take advantage of fuel demand efficiently by heavily marketing its hybrid electric cars. Audi should develop a marketing campaign to capture the attention of the "green target market", which has been a group less focused by Audi. Audi currently has a competitive advantage over its competitors because it has been researching, developing and producing hybrid cars for decades. Audi needs to incorporate an image change into their marketing campaign as many customers think of Audi only as a luxury brand and not as an environmentally friendly group. Many are unaware of Audi's extensive research and history with hybrid models, which is something Audi should advertise in the current market. By adopting these recommendations Audi will continue to grow by incorporating a new target market which will increase the customer base and therefore increase sales.