In a strategic move to regain momentum in its most important market, Audi is set to unveil the first vehicle from its new China-only electric brand at the Shanghai auto show on April 23. CEO Gernot Döllner confirmed the debut during the company’s annual press conference on March 18, marking a significant pivot in Audi’s China strategy.
A New Identity for a New Market
This upcoming EV will be the first under a brand that breaks from Audi tradition by omitting the iconic four-ring logo. Designed in collaboration with long-time partner SAIC Motor, the new sub-brand is tailored specifically to younger, tech-forward Chinese consumers. A concept version — the Audi E crossover — was teased in 2023, showcasing a sleek, low-slung Sportback silhouette measuring 4,870 mm in length.
Targeting a Shifting Market
China’s automotive landscape has evolved rapidly, especially in the electric segment. Domestic automakers are dominating the EV race with competitive pricing, advanced technology, and quicker product rollouts. In response, Audi’s localized brand aims to regain relevance by focusing on digital innovation, design appeal, and agility — key qualities in appealing to a younger, urban demographic.
Rollout Strategy and Upcoming Models
The first production model is expected to hit showrooms a few months after its Shanghai debut. Audi also revealed that two additional models will follow within the next three years under the same sub-brand. Although specific details about the market segment remain under wraps, the concept hints at a premium crossover with a strong focus on sportiness and design.
SAIC Partnership Plays a Central Role
The new electric marque strengthens Audi’s partnership with SAIC, which began in 2021. SAIC is already responsible for producing the Audi A7L sedan, Q6 Roadjet SUV, and the China-only Q5 E-tron — all exclusively for the domestic market. Technology from SAIC is expected to be integral to the new EV lineup, further blending German engineering with local expertise.
Addressing Market Challenges
Audi’s Chinese sales declined 11 percent in 2023, with 653,016 units sold — a reflection of reduced consumer spending and fierce price competition from local brands. The broader VW Group has also struggled to maintain pace in China’s new energy vehicle (NEV) market, where electric and plug-in hybrid models made up nearly half of all sales in 2024.
“E-mobility is developing faster there than anywhere else in the world,” Döllner acknowledged, reinforcing the urgency behind Audi’s intensified focus on localization and innovation in China.
China-Localized Premium Models on the Horizon
In addition to the new sub-brand, Audi will also begin selling two high-end models — the A6 E-tron sedan and Q6 E-tron SUV — built in partnership with FAW Group. These vehicles will be the first in China to utilize Audi’s Premium Platform Electric (PPE), a next-generation EV architecture designed for luxury performance and extended range.
European Operations Benefit from China’s Speed
Interestingly, Audi’s accelerated development cycles in China are now influencing workflows in Germany. Döllner noted that some new projects at the company’s Ingolstadt headquarters are only “a few months behind” their Chinese counterparts — a marked improvement in speed-to-market.
“It’s our clear goal to become faster,” he said, underscoring Audi’s intent to align its global operations with the agility required to compete in the EV era.
As the brand prepares for its Shanghai reveal, all eyes will be on how well this tailored approach resonates with China’s next generation of car buyers — and whether it can help Audi reclaim its status as a premium leader in the world’s largest auto market.
