Audi and FAW form new electric vehicle production company in China

Audi expands its presence in China. A milestone on the road to creating high-end sustainable mobility, Audi and FAW today signed a Memorandum of Understanding which sets out the framework for the cooperative production of electric vehicles based on the PPE platform. The memorandum of understanding was signed during the Germany-China Automotive Conference, currently taking place in Changchun, northern China.

In the future, Audi will also bring the Premium Electric Platform (PPE), which was jointly developed with Porsche, to China to further transform its larger market. Several fully electric Audi models are due to be produced for the Chinese market with the new PPE platform from 2024.

“This decision underlines the strategic importance of the Chinese market. So we are pushing innovations at the local level, ”said Markus Duesmann, Chairman of the Board of Audi AG and Head of Business in China.

With the signing of the Memorandum of Understanding, Audi affirms its cooperation with long-time partner FAW in a joint venture. At the same time, Audi is following the path of sustainable mobility in China and orienting its portfolio of engines, produced locally, towards the demands and wishes of high-end Chinese customers. Plans for the new company are still being developed. The start of production is scheduled for 2024.

Werner Eichhorn, President of Audi China: “This is another step in our strategy to electrify the Chinese market. We also confirm our commitment to our longtime Chinese partner FAW and to our business in China, which we are now taking to a new level ”.

Audi's electric initiative in China has already started: Audi and FAW jointly produce the fully electric Audi Q2 L e-tron and the plug-in hybrid Audi A6 L TFSI e. In addition, the previously imported Audi e-tron has been produced in Changchun since the end of September. In the coming years, Audi will offer or locate further fully electric models of the e-tron family in China. By 2025, Audi plans to make about a third of its sales in China with electrified cars.

From January to September 2020, Audi delivered 512,081 vehicles to customers in China, 4.5% more than the previous year in the same period. Despite production interruptions due to the coronavirus, the brand achieved the best result in its 30-year history in China.

Audi already produces at four sites in China as part of the FAW-VW joint venture: in Changchun, Foshan, Tianjin and Qingdao, with a total capacity of around 700,000 vehicles.

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