Audi New China-Exclusive EV Series: A Shift in Branding Strategy

Audi, the premium marque owned by Germany’s Volkswagen, is set to launch a new series of electric vehicles (EVs) in China. According to sources directly familiar with the plans, these new models will not feature Audi’s iconic four-ring logo, in a significant departure from tradition.

Brand Image Considerations:

The decision to omit the four-ring logo stems from “brand image consideration,” reflecting a strategic move to adapt to local market preferences. The new series, internally codenamed “Purple,” will utilize automotive architecture co-developed with Chinese partner SAIC and rely heavily on local suppliers and technologies.

Branding and Unveiling:

Whether the new series will feature a different logo or simply carry the Audi name remains vague. A concept car for the “Purple” series is scheduled to be unveiled in November, along with an explanation of the series’ “brand story.”

A third source briefed on the matter indicated that nine models are planned by 2030. However, the specifics and features of these models have yet to be disclosed, as Audi has not made these plans public.

Chinese automakers are gaining significant market share in their home country, the world’s largest automotive market, by offering tech-savvy EVs. This trend has led to dropping sales for foreign automakers still heavily reliant on gasoline-engine models. Consequently, many foreign companies are forming new partnerships to stay competitive.

Audi and SAIC Collaboration:

In May, Audi and SAIC announced a joint venture to develop a platform for EVs tailored for the Chinese market. This collaboration allows Audi to better understand and cater to Chinese consumer preferences while accessing a vast customer base.

Yale Zhang, managing director at Shanghai-based Automotive Foresight, notes that developing China-specific models helps foreign automakers integrate the latest EV features and Chinese tastes. These insights could eventually influence models adapted for other markets.

Sales Performance and Competition:

Audi sold fewer than 10,000 EVs in China during the first half of 2024, significantly trailing behind premium EV brands Nio and Zeekr, each of which sold eight times more. The new EV series aims to boost Audi’s competitiveness in this rapidly evolving market.

The new EV series will feature a CATL battery and an advanced driving assistance system (ADAS) from Chinese tech startup Momenta. The electrical architecture will be based on SAIC’s EV brand, IM Motors.

Broader VW Strategy:

Volkswagen has also sought to leverage Chinese EV expertise. This year, VW reached a deal with Xpeng, ensuring that all locally produced VW-branded EVs use architecture co-developed with the Chinese firm.

Audi’s current EVs in China, such as the Q4 e-tron, Q5 e-tron SUV, and the upcoming Q6 e-Tron, will continue to feature the four-ring logo. The Q6 e-tron, launching later this year, will be Audi’s first car using VW’s advanced premium platform electric (PPE) platform and will include an ADAS supplied by Huawei.