They've just bought up most of Porsche too seriously knocking the Audi/VW/seat/Skoda down the pecking order now
Yes, I don't think we can leave Bentley or Lamborghini off the list. Porsche too... although I'm never sure if they own VAG or if VAG own them!
I mentioned BMW and Jaguar because those two are competing with Audi, Mercedes too. VW are competing with Ford. In that way Audi is a premium over VW. But VW is a premium brand over Hyundai. It's all relative. The cars may have the same base parts but I don't know anyone who would swap their Golf for a Fabia.
Having said that I'd take BMW or Mercedes over Audi any day, and Jaguar over the lot of them without question.... So maybe Audi aren't as premium as they like to think!