Saturday, July 27, 2024

Audi and SAIC Collaborate on China-Specific EV Platform to Boost Market Presence

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Audi, the premium brand of Volkswagen, has announced a strategic partnership with Chinese joint venture partner SAIC to develop a new platform tailored for intelligent and electric vehicles in China. This move underscores the increasing pressure on traditional automakers to adapt to the evolving landscape of the world’s largest auto market.

The collaboration aims to address Audi’s lagging performance in the Chinese EV market, where it has trailed behind competitors like Tesla amid intense pricing competition. The new platform, known as the Advanced Digitized Platform, is expected to reduce Audi’s time-to-market by over 30%, enabling faster development and deployment of new models.

The first of three electric vehicles based on this platform is slated for launch in 2025, marking a significant step in Audi’s electrification strategy. This announcement follows VW’s earlier partnership deal, which included plans to jointly launch two Volkswagen-branded EV models by 2026 and a recent investment in Chinese automaker Xpeng.

This partnership highlights the increasing reliance of European automakers on Chinese expertise in the EV segment. Stellantis, a Franco-Italian automaker, also announced plans to introduce two models from its Chinese partner Leapmotor to the European market.

In China, Audi currently offers two EV models, the Q4 e-tron and Q5 e-tron, based on VW’s MEB platform. Additionally, Audi is developing a new EV platform with Porsche, while also planning to introduce the first EV based on its Premium Platform Electric (PPE) architecture in China in 2025 through its joint venture with FAW.

Despite the growing competition, Audi remains optimistic about its future in the Chinese EV market. The sales of its current EV models in China, totaling 6,420 units in the first four months of the year, indicate a promising trajectory for the brand.

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