In an unprecedented move to strengthen its market share, Germany’s Audi is reportedly engaged in discussions with SAIC Motor, a Chinese state-owned automaker, to purchase an electric vehicle platform. Two individuals familiar with the matter disclosed this information, highlighting the pressure faced by legacy and Western brands in the world’s largest auto market as they compete for electric vehicles (EVs) amidst a decline in Audi’s EV sales compared to Tesla and domestic competitor Nio.
Sources, who chose to remain anonymous due to the confidentiality of the matter, revealed that Audi, the premium car brand of Volkswagen AG, aims to take over SAIC’s EV unit, IM Motors, along with its EV platform. The talks are said to be at an advanced stage, indicating the seriousness of the negotiations. SAIC’s EV brand, IM Motors, released its first model, the L7 sedan, in June 2022 and is controlled by SAIC, with investments from Alibaba Group.
Both Audi and SAIC declined to comment on the ongoing talks. The financial details of Audi’s offer for the EV platform and the potential involvement of SAIC in the production of the L7 sedan post-acquisition remain unknown.
News of Audi’s potential acquisition of the platform was reported by Chinese media outlet Mingjing Pro. Previously, Automobilwoche mentioned that Audi was in discussions with multiple manufacturers to secure an EV platform, without specifying them.
Leading automakers, including Toyota, have been striving to emulate Tesla and certain Chinese EV manufacturers by developing EV platforms from scratch. This approach aims to reduce costs, enhance performance, and protect profit margins.
Audi has not previously acquired a platform from another manufacturer and has primarily relied on Volkswagen’s EV-dedicated MEB platform for its models in China. However, the company has been concurrently working on a new EV platform with Porsche. Moreover, Audi’s CEO Markus Duesmann, who will step down from his position in September, emphasized the urgency of accelerating model development to meet the surging demand for electric vehicles, particularly in China. Duesmann also acknowledged that Audi’s sales performance has fallen short due to the absence of vehicles tailored to Chinese preferences.
Currently, Audi offers two EV models, the Q4 e-tron and Q5 e-tron, developed on Volkswagen’s MEB platform in China. According to data from the China Association of Automobile Manufacturers, Audi sold just over 3,000 EV units in the first quarter, whereas BMW sold 21,646 EVs, and Tesla sold 137,429 vehicles.
Audi and Porsche have been collaboratively working on a new EV platform known as “Premium Platform Electric” (PPE). This platform will be implemented in vehicles starting from late 2024 at a plant being constructed by Audi in the northeastern Chinese city of Changchun. The Audi spokesperson revealed that the plant will produce PPE platform adaptations specifically tailored to the Chinese market.
