AUDI Asia Pacific is spending big bucks to promote its R8 high-performance car. For the past three weeks, the German premium carmaker has been prominently featured in print and television advertising as it launches the new mid-engined model, which costs half a million dollars here.

A high-profile Sunday drive down Orchard Road kicked off the launch of the R8 late last month.

The modern sports car was joined by an Auto Union Type C from the 1930s, the Rallye Quattro A2 from the 1980s, and the R8 Le Mans Prototype endurance race car from this decade. The vehicles were then displayed at the Singapore History Museum.

'The immediate objectives are to convey the Audi story - that Audi is a brand with a strong motorsports heritage with a rich history of innovation and groundbreaking technologies,' explains Reinhold Carl, managing director of Audi Asia Pacific.

He adds: 'Audi pioneered many of the technologies that are used in the automotive industry today. We have been successful when we do things differently, and the event with the three legendary race cars and the new Audi R8 driving down Orchard Rd was a demonstration of this.'

The promotion of the R8 and the rest of the Audi range in the media over the next year will likely come from a marketing budget that is around 3 per cent of nett turnover, or an estimated $6 million. But Audi declines to confirm it.

What it will say, however, is that 40 orders have been received for the R8. The car is priced at $495,000 with COE and it is an important image booster for the marque.

'The Audi R8 is a statement about Audi,' says Mr Carl. 'It demonstrates Audi's capability to produce high-performance sports cars and places us in the same league as the most prestigious automotive brands. We believe that there would be an image transfer to the rest of the model range.'

As a result, Audi plans to sell 20 per cent more cars in 2008.

'Our target for next year is around 1,100 units,' says Mr Carl. 'This year, we are looking to close at more than 900 units.'

These numbers make Audi the fastest growing premium brand here, as it is in its other markets around the world. Last year, Audi sold 650 cars, while in 2005, the tally was 540.

As usual, the Audi A4 compact sedan continued to be the best-selling model, or about 30 per cent of total sales. It is closely followed by the mid-sized A6 saloon, which makes up about 25 per cent of volume. Mr Carl says the TT sports model is also doing well. It accounts for about 15 per cent of sales.

'Year-to-date sales of the TT are about 130 units, which makes us the segment leader,' he says.

'The three principal conditions for an automotive prestige brand have been identified as: one, having a long prestigious history; two, constant major innovations; and three, success in motorsports. Audi has all three components,' declares Mr Carl.

These help to raise the Audi brand profile, he says, and ultimately contribute to sales volume.

'As consumers know more about what Audi stands for, the decision to choose an Audi will be easier, and this will affect sales positively.'