Audi and SAIC's Electrifying Partnership: Powering China's EV Revolution

In a strategic move to bolster its electric vehicle (EV) presence in the Chinese market, Audi has joined forces with the country's largest state-owned automaker, SAIC. This collaboration will result in the launch of a new Audi-branded BEV (battery electric vehicle) in 2025, aiming to address the German brand's lackluster NEV (new energy vehicle) sales performance in the Middle Kingdom.

Unlocking China's EV Potential: Audi and SAIC's Synergistic Venture

SAIC: A Powerhouse in China's Automotive Landscape

SAIC, the biggest state-owned Chinese automaker, is a well-known player on the global stage, particularly for its ownership of the iconic British MG brand. However, the company's primary source of revenue stems from its joint ventures with international automakers, including Volkswagen and GM. In addition to these partnerships, SAIC also operates its own electric vehicle brands, such as Rising Auto and IM Motors, showcasing its commitment to the burgeoning EV market.

Audi's Pursuit of EV Dominance in China

Audi's decision to collaborate with SAIC, rather than its existing Chinese assembly partner, the FAW Group, is a strategic move to address the German brand's struggling NEV sales in the country. In 2021, Audi managed to sell only around 31,000 vehicles in China, a far cry from the rapidly growing EV segment. This partnership with SAIC aims to provide Audi with the necessary support and resources to gain a stronger foothold in the world's largest automotive market.

Leveraging Cutting-Edge Technology: Audi-SAIC's Advanced Digitized Platform

The initial collaboration between Audi and SAIC was announced in 2023, with early rumors suggesting that Audi would utilize the iO Origin platform from the IM Motors brand, a joint venture between SAIC and Alibaba. However, Audi later confirmed that its new models would be built on the Advanced Digitized Platform (ADP), a chassis developed under the leadership of a Chinese team. According to Audi, the ADP has significantly reduced the launch time of new electric cars by more than 30%, addressing the German automaker's previous challenges with the lengthy development cycle of its in-house PPE platform.

Unveiling the First Audi-SAIC EV: A Midsize Masterpiece

The first fruit of the Audi-SAIC partnership will be a midsize electric vehicle, set to be officially revealed in November of this year. This new BEV will make its debut in the Chinese market in 2025, marking a significant milestone in the collaboration. Interestingly, Audi has decided to forgo the traditional four-ring logo on this model, allowing it to be easily distinguished from the brand's vehicles originating from Germany.

Accelerating the EV Transition: Audi and SAIC's Ambitious Roadmap

The development process for the inaugural Audi-SAIC EV took 18 months, and the two companies are now poised to accelerate their partnership to bring more products to the market. Initially, they plan to launch three vehicles in the B and C classes, with a long-term goal of introducing nine Audi-SAIC electric cars by 2030, subject to the sales performance of the first three models.

A Strategic Shift: Audi's Embrace of China's EV Dominance

Audi's decision to collaborate with SAIC for the development of its BEVs is a pragmatic move, driven by the shifting dynamics in the global automotive landscape. While the demand for electric vehicles is waning in Europe, it continues to surge in China, the world's largest EV market. By partnering with SAIC, Audi can leverage the Chinese company's resources and expertise to maintain its market share in traditional petrol-powered regions while gaining momentum in the rapidly growing NEV-friendly Chinese market.