Audi is taking a radical step in China: a new electric car brand without the iconic four rings is intended to appeal to young, technology-savvy customers. Can the cooperation with SAIC bring the car manufacturer back forward in the competitive Chinese market for electric cars? Audi
Audi relies on China speed and a new brand
The German premium manufacturer Audi is breaking new ground in China to regain lost market share. In cooperation with the Chinese state-owned company SAIC presented Audi boss Gernot Döllner unveiled a new electric car brand for the Chinese market in Shanghai on November 7, 2024 – and without the iconic four rings in the logo. Instead, an illuminated “AUDI” lettering in capital letters adorns the front and rear of the concept vehicle presented. This radical departure from traditional branding is intended to appeal to a younger, technology-savvy target group.
The customers here are much younger, on average 30 to 35 years old in the premium segment, while the rest of the world is 55 years old. Fermin Soneira, Audi brand manager
Fast development thanks to Chinese partner
The collaboration with SAIC enabled Audi to achieve a development time of just three years, which is record-breaking for German standards. The Ingolstadt-based group uses the vehicle architecture of SAIC’s premium brand IM Motors.
The first series model, a sporty sedan, is scheduled to come onto the market in mid-2025. Two more models, including an SUV, are planned for the next three years. Technically, Audi promises a lot with the new electric series:
- A range of around 700 kilometers
- Recharge electricity for 370 kilometers in just ten minutes
- New 800-volt architecture, jointly developed as an “Advanced Digitized Platform”.
Two-pronged strategy for the Chinese market
With the new brand, Audi will be pursuing a two-pronged approach in China. The traditional Audi models with the four rings will continue to be produced by long-standing partner First Automotive Works (FAW). New electric vehicles, however, are being developed in cooperation with SAIC. Audi boss Döllner emphasizes that the new brand is by no means an “entry-level brand”. Rather, they want to address a target group that has not yet come into contact with Audi.
This strategy is extremely important for Audi. In the first nine months of 2024, the manufacturer sold fewer than 15,000 electric vehicles in China – a fraction compared to Chinese electric car brands such as Nio or Xpeng, which were able to sell up to ten times more vehicles.
Challenges at home
While Audi is breaking new ground in China, cuts may be imminent at its headquarters in Ingolstadt. According to media reports, the board is planning a new savings program that could result in the loss of several thousand jobs. In development alone, 2,000 of the 10,000 jobs are threatened.
The works council confirmed ongoing discussions to make Audi “weatherproof”, but denied specific job cuts plans. The challenges for Audi are enormous both in China and at home. The success of the new electric strategy in China could be crucial to whether the premium manufacturer can regain a foothold in the world’s largest car market and at the same time secure jobs in Germany.
