Audi and SAIC to Develop New China-Specific EV Platform

On Monday, Volkswagen’s premium brand Audi announced a new collaboration with its Chinese joint venture partner SAIC to develop a China-specific platform for intelligent and electric vehicles.

This initiative, announced roughly ten months after Volkswagen’s significant partnership deal in China, underscores the increasing pressure on Western brands and traditional automakers to adapt and compete in the world’s largest auto market.

Advanced Digitized Platform for Quick Market Entry:

Audi and SAIC’s joint venture will focus on creating models using the Advanced Digitized Platform. This new architecture is designed to reduce the time-to-market by over 30%, allowing Audi to respond more rapidly to market demands. 

The first of three electric vehicle (EV) models utilizing this platform is expected to be released in 2025, showcasing Audi’s commitment to accelerating its EV strategy in China.

Enhanced Cooperation and Expanding EV Lineup:

The partnership between Audi and SAIC builds on Volkswagen’s earlier announcement in July, where it disclosed plans to invest around $700 million in Xpeng, acquiring a 4.99% stake and planning to co-develop two Volkswagen-branded EV models by 2026. 

This move reflects a broader trend of European automakers leveraging Chinese expertise to advance in the competitive EV landscape.

Existing and Future EV Platforms:

Currently, Audi uses Volkswagen’s MEB platform for two EV models in China: the Q4 e-tron and Q5 e-tron, which are produced through ventures with SAIC and FAW. 

Additionally, Audi is working on a new EV platform with Porsche, the Premium Platform Electric (PPE), set to start production in China by 2025 at the earliest, in partnership with FAW.

Competitive Landscape and Market Performance:

Audi’s decision to integrate Huawei’s advanced driving assistance system (ADAS) into the upcoming Audi Q6L e-tron highlights its strategy to enhance its technological offerings in China.

Despite these efforts, Audi has lagged behind competitors like Tesla and other Chinese EV manufacturers. Sales of Audi’s current EV models in China reached 6,420 units in the first four months of the year, representing a modest 0.45% of total EV sales.