Audi Unveils New Electric Vehicle Brand in China

By Brenda Goh

SHANGHAI (Reuters) – Audi on Thursday unveiled a new electric vehicle brand in China, featuring vehicles that will carry only the name AUDI rather than the signature four-ring logo. This strategy aims to capture younger customers in the world's largest automotive market.

This premium marque, part of Germany's Volkswagen (ETR: VOWG_p), collaborated with Chinese automaker SAIC last year to co-develop vehicles under this brand. The first vehicle is set to launch in the summer of next year.

This initiative is part of efforts by Audi and SAIC to regain market share in China, where local and foreign automakers have been outpaced by rivals focusing on electric and hybrid vehicles. Reuters previously reported that the new brand would not feature Audi's four-ring emblem.

By developing cars specifically for China, foreign automakers can more effectively target a vast customer base. The new electric vehicle (EV) series utilizes automotive architecture co-developed with SAIC, allowing Audi to depend more on local suppliers and technology.

The series targets younger customers who prioritize advanced technology features such as driver-assistance systems. Fermin Soneira, CEO of the project, noted that the average customer in the premium segment is aged 30 to 35, much younger than the global average age of 55.

In addition to the unveiled sportback, the partnership plans to launch two more vehicles, including a sport-utility vehicle, within the next three years.

As of the first nine months of 2024, Audi sold fewer than 15,000 EVs in China, according to the China Association of Automobile Manufacturers. In contrast, domestic premium EV brands, Nio (NYSE: NIO) and Xpeng (NYSE: XPEV), sold approximately ten and seven times more, respectively.

Currently, Audi's EVs in China bear the four-ring logo, including the Q4 e-tron (developed with FAW), the Q5 e-tron SUV (developed with SAIC), and the Q6 e-tron, which is set to launch later this year.