Audi adopts “two brands, two partners” strategy in China
Audi is restructuring its joint ventures in China and will in future pursue a "two brands, two partners" approach. The joint venture with SAIC will focus exclusively on local sub-brand 'AUDI' (without rings), while the business with the four-ring vehicles will be consolidated in the joint venture with FAW.
China electric car AUDI E7X
Image: Volkswagen
We first reported on this potential move at the beginning of September. Now, Audi’s new China strategy is official. On the Chinese social media platform WeChat, the company has announced that it has signed new agreements with its long-standing Chinese partners, FAW and SAIC Motor. These agreements aim to differentiate the positioning of the two brands – Audi (with the four rings) and AUDI (without rings) – adapt their strategies, and realign their distribution accordingly.
The new approach is based on the motto “two brands, two partners”: while the joint venture with FAW, established in 1988, will focus on the classic brand with the four Audi rings, the joint venture with SAIC, founded in 2021, will concentrate entirely on the new AUDI brand (in uppercase but without rings), which was introduced in 2025. This is intended to enable both brands to address the Chinese market in the future with greater speed and precision.
AUDI (without rings) focuses on electric vehicles
The AUDI brand, together with SAIC, has already introduced two models – the electric estate E5 Sportback and the electric SUV E7X – and will continue to offer electric vehicles or ‘New Energy Vehicles’ (NEVs). With the official opening of the AUDI Innovation Tech Center (AITC) in Shanghai, which is exclusively dedicated to the AUDI brand, both parties aim to further deepen strategic synergies and collaboration across the entire value chain of future vehicles.
Previously, SAIC-Audi had drastically reduced or even completely halted production of four-ring models with internal combustion engines, such as the A5L Sportback, A7L, or Q6, according to media reports. In the future, SAIC-Audi will no longer be responsible for these models. However, SAIC-Audi will remain active in the distribution of four-ring models until the end of 2027 and will continue to provide aftersales and service beyond that.
FAW-Audi, on the other hand, will continue to produce both premium vehicles with internal combustion engines and New Energy Vehicles. Under the joint venture, Chinese variants of PPE-based electric vehicles with a long wheelbase are also being developed, specifically the Audi A6L e-tron and the Q6L e-tron.
Johannes Roscheck, outgoing President of Audi China, explained: “Implementing the two-brand strategy supports our local partners in providing Audi customers with first-class products and experiences. Thanks to a clearer strategic focus and differentiated brand positioning, we are laying a solid foundation for Audi’s long-term and sustainable development in China.” In November, Roscheck will be succeeded as President of Audi China by former Chery manager Jeff Zhang.
Achieving joint progress
FAW CEO Liu Yigong stated: “In the future, FAW-Audi will adhere to the development concept of being ‘customer-centric’, continuously implement the strategy of ‘joint progress in combustion engines, hybrids, and fully electric intelligence’, and meet the diverse needs of users in all areas.”
SAIC boss Jia Jianxu added: “The Chinese automotive industry is at the forefront of global intelligent electro-innovation. What SAIC must do is to truly align the advanced industrial ecosystem, technology system, and Audi’s luxurious tradition. The AUDI brand carries the mission of establishing a new model of joint venture cooperation and builds on the deep foundation of ‘Vorsprung durch Technik’ to further strengthen Audi’s competitive advantage in the Chinese market.”