Audi and SAIC are stepping up their China strategy. The two partners have signed a new strategic cooperation agreement covering the full value chain for upcoming models under the China-exclusive brand AUDI.
The Volkswagen Group premium arm and SAIC Motor have worked together in China for decades. In 2023, they deepened ties with a joint development partnership for electric vehicles. In May 2024, they followed up with the official agreement on the ‘Advanced Digitised Platform’ (ADP).
The collaboration is already delivering results. In November 2024, the partners unveiled the first model, the all-electric E5 Sportback under the new AUDI sub-brand. Since August 2025, the E5 has entered series production.
However, after initially high demand, interest from Chinese customers cooled rapidly. By February 2026—just six months after its market launch—AUDI was forced to significantly reduce prices, officially as part of a limited-time promotion ending on 31 March. A second model, the electric SUV E7X, has already been announced and is set to debut as a production model at the Beijing Auto Show this week. However, these vehicles have not resonated with the Chinese market as teams in Ingolstadt and Wolfsburg had hoped.
As part of the now-announced expansion of the cooperation, the ADP, which underpins the first two AUDI models, is set to be further developed.
“At the centre of the agreement is the new AUDI Innovation & Technology Centre in Shanghai,” Audi said.The tech hub will operate under Audi’s lead. It will focus on developing China-specific electrification technologies and intelligent connected vehicles (ICVs) across the entire value chain.
Electric powertrains are set, but not the focus
“By leveraging the new R&D Centre, AUDI aims to accelerate its journey to becoming a leading premium ICV brand in China that offers advanced technology and smart solutions. At the forefront will be AI-powered, immersive smart cabins and advanced driver assistance systems engineered specifically for China’s premium users,” Audi explained.
The priorities are clear. Audi will keep the electric powertrains of its AUDI models unchanged—there is no indication of range extenders. Instead, Audi is targeting the areas that matter most to Chinese customers: the in-car experience and advanced driver assistance systems. These features are set to drive the brand’s appeal in future models.
Alongside the E5 Sportback and the E7X, Audi has announced four additional models based on the further-developed ADP. The carmaker has not shared details or timelines yet. A first preview could come as a concept at the upcoming Auto China 2026. For now, Audi has only confirmed the E7X as the second production model.
“Audi’s ambition is to remain a strong player in China through the ICV era. Our partnership with SAIC and our NEV brand AUDI has been instrumental, allowing us to connect with new customer groups and expand our product offerings to meet their evolving needs,” says Gernot Döllner, Chairman of the Board of Management of AUDI AG. “Following the successful launch of AUDI and its first model, we are ready to take the next step: establishing a dedicated Innovation and Technology Center in cooperation with our long-trusted partner SAIC to drive Vorsprung in China.”
“The achievements of the past two years with AUDI powerfully demonstrate the strength of our partnership,” says Jia Jianxu, President of SAIC Motor. “Now, we are excited to move forward together, building on this foundation to jointly pursue innovation and leadership in the premium electric vehicle market.”
Fermín Soneira, CEO of the cooperation project between Audi and SAIC: “The extension of our agreement and the establishment of a dedicated Innovation and Technology Center is a historic milestone for our brand. It paves the way for the next generation of AUDI’s intelligent connected vehicles in China.”