Volkswagen’s premium brand Audi has announced plans to develop a new China-specific platform for intelligent and electric vehicles in partnership with SAIC, its Chinese joint venture partner. This move comes in response to increasing pressure on western brands and legacy automakers to adapt to the growing demand for electric vehicles (EVs) in China, the world’s largest auto market.
Audi has been struggling to keep up with Tesla and other Chinese rivals in terms of EV sales, largely due to a protracted price war. However, the development of the Advanced Digitized Platform, a new architecture that will significantly reduce time-to-market by more than 30%, is expected to boost Audi’s competitiveness in the EV market.
The first of three EV models based on this new platform is set to hit the market in 2025. This announcement also sheds light on the broader collaboration between Audi and SAIC, as Volkswagen previously revealed plans to purchase a 4.99% stake in Xpeng, a Chinese electric vehicle manufacturer, and jointly launch two Volkswagen-branded EV models by 2026.
Audi’s partnership with SAIC is just one example of how European automakers are increasingly relying on Chinese expertise in the EV sector. Stellantis, a Franco-Italian automaker, recently announced its venture with Chinese partner Leapmotor to sell two Leapmotor models in Europe starting from September.
While Audi has utilized Volkswagen’s MEB platform for two EV models in China through its joint ventures with SAIC and FAW, the company is also developing its own EV platform in collaboration with Porsche. The first EV based on this Premium Platform Electric (PPE) architecture, developed by Audi’s headquarters, is expected to be produced in China at its joint venture with FAW from 2025 onwards.
In addition to these advancements, it was reported that the Audi Q6L e-tron, an upcoming EV model, will be equipped with Huawei’s advanced driving assistance system (ADAS) in China. This showcases the integration of cutting-edge technologies into Audi’s EV offerings, further enhancing their appeal in the Chinese market.
Despite the challenges Audi has faced in the Chinese EV market, the sales of its two existing EV models in the country have reached 6,420 units in the first four months of this year. While this accounts for only 0.45% of total EV sales, it demonstrates the potential for growth and increased market share once the new China-specific platform and future EV models are introduced.
By collaborating with SAIC, developing a dedicated EV platform, and incorporating advanced technologies, Audi is positioning itself to better compete in the rapidly evolving Chinese EV market. The joint efforts with Chinese partners not only enable Audi to meet the demand for intelligent and electric vehicles but also demonstrate the importance of strategic alliances in navigating the intensifying EV race. As Audi continues to adapt and innovate, it is poised to make significant strides in capturing a larger share of China’s booming EV market in the coming years.
