Audi Collaborates with SAIC to Introduce New EV Models in Untapped Chinese Segments

Volkswagen is fortifying its position in the Chinese auto market through strategic partnerships with Xpeng and SAIC, according to the German auto giant. In addition to the collaboration with Xpeng, Volkswagen’s premium brand Audi has inked a strategic memorandum with SAIC Group, aiming to deepen their existing cooperation.

The joint venture between Audi and SAIC will focus on expanding their electric vehicle (EV) portfolio for the premium market by co-developing new EV models, with an emphasis on segments previously untapped in China. These co-developed EVs will feature cutting-edge hardware and software, providing Chinese customers with a seamless, connected digital experience. All parties involved will leverage their core competencies to ensure a successful development process.

Volkswagen’s partnership with Xpeng and Audi’s collaboration with SAIC further solidify the company’s position in the rapidly growing Chinese automotive market and reinforce its commitment to advancing electrification strategies in the region. The goal is to broaden their customer base and capture new market segments to take full advantage of China’s booming EV market.

Recent reports indicated that Audi is in talks with SAIC to acquire the latter’s EV platform, signaling Audi’s determination to expand its market share. However, Volkswagen’s statement did not mention specifics about the acquisition of the EV platform owned by IM Motors, SAIC’s EV division.

Deutsche Bank analysts expressed positive views on Audi’s potential purchase of an EV platform in China, considering it as a positive step that demonstrates Volkswagen’s willingness to embrace partnerships. Such an acquisition would underscore Volkswagen’s commitment to furthering its electric vehicle ambitions in China.