Here's how Audi will tap into the world's largest electric car market.
As Audi prepares to expand its EV family in the US with new models like the upcoming e-tron GT and Q4 e-tron, the German automaker has revealed a bold new plan to break into the world's largest electric car market: China. To capitalize on the popularity of EVs in China, Audi has announced it's teaming up with First Automobile Works (FAW) to form a new company that will develop luxury electric cars for the Chinese market.
As part of the joint venture, the two companies will join forces to build Audi-badged electric models at a new $4.6 billion facility opening in Changchun, China, from 2024. This will strengthen VW Group's long-running partnership with FAW that has spawned locally-manufactured Audi and VW models built specifically for the Chinese market including long-wheelbase versions of the Audi A6 and A4.
Audi AG and Volkswagen Group China will own a 60 percent share in the new company, with the remaining 40 percent owned by FAW. "With the new Audi-FAW company in Changchun, we are further expanding our presence in the Chinese market and strengthening our position as a manufacturer of fully electric premium vehicles through local production," said Markus Duesmann, Chairman of the Board of Management of Audi AG.
"In doing so, we are continuing the Audi success story in China and actively helping to shape the transformation of the Chinese automotive industry as it moves toward sustainable mobility." Werner Eichhorn, President of Audi China, added: "This deepened partnership between Audi and FAW heralds a new era of electrification as the next 'golden decade' for Audi on the highly important Chinese market."
Details about Audi's new luxury EV lineup developed for China are scarce. All we know is that each model will be underpinned by the Premium Platform Electric (PPE) architecture co-developed with Porsche - the same platform that will underpin the next-generation Porsche Macan EV.
Audi's partnership with FAW will allow the German automaker to increase the number of locally-produced models to 12 by the end of 2021. This is an important step as China remains Audi's largest market in the world, with seven million vehicles delivered and 727,358 vehicles sold last year, and will help Audi achieve its goal of EVs making up one-third of its sales in China.