Audi aims to recapture its crown in the Chinese market

Audi is no stranger to the Shanghai auto show, but the biennial gala for vehicle makers and car aficionados has never been as significant for the German carmaker as this year.

Top executives from Audi and its two Chinese partners, FAW and SAIC, were onstage on the opening day of the show that will run from April 19-28.

It was the first time that representatives of the trio have made a joint public appearance since SAIC became Audi's second partner. FAW has been producing vehicles with Audi for decades in China.

It was a historic moment for the Ingolstadt-based carmaker as it speeds up efforts to expand its presence and vies for the No 1 position in the country's premium vehicle segment.

"Our strong partnerships are the cornerstones of Audi's success in China and together we are bringing our 'Golden Decade' strategy to life," said Audi China President Werner Eichhorn.

Eichhorn took the helm of Audi's China operations in 2020, when the carmaker had been overtaken by BMW and Mercedes-Benz in terms of sales.

He soon revealed the "Golden Decade" strategy to return Audi to the top position it had enjoyed for three decades. One of the goals is to deliver 1 million vehicles by 2025 and another is to deepen local partnerships.

"In cooperation with our partner of many years, FAW, we have successfully built up our business in China for three decades," Eichhorn said.

"Together with FAW and our second cooperation partner, SAIC, we are now entering a new phase of growth. These are partnerships with which we will continue our successful course in Audi's biggest market."

Late last year, Audi announced it would establish a new cooperative enterprise with FAW to produce electric models on the basis of the new PPE technology platform, which is co-developed by Audi and Porsche.

Audi said the first of these automobiles for the Chinese market are scheduled to come off the production line from 2024 in Changchun, Jilin province. The city is where the first Chinese-made Audi rolled off the assembly line back in 1988. Since then, nearly 7 million Audi vehicles, both locally made and imported, have been delivered in the country.

"We are actively pushing ahead with the change to sustainable mobility in China. With our new arrangements we have created the perfect foundation for this and are setting a new strategic course for Audi's business in China," said Markus Duesmann, CEO of Audi AG.

Duesmann is the only top executive of a premium carmaker to oversee its China business. He is only the second to do so in the auto industry. The first was Herbert Diess, CEO of Audi's parent company Volkswagen.

Audi said this structure of governance allows executives in Germany to learn faster about developments in the Chinese market and speeds up decision-making. It also aids teamwork within the Volkswagen Group, according to the carmaker.

At its booth, Audi is showcasing a lineup of around 30 models, including those from its two partners. Eichhorn said the models being shown in Shanghai are a sign of Audi's competitive edge and its commitment to customers in China, its largest market.

Two of the models are from SAIC Audi: one is the Audi A7L limousine, which will be made in Shanghai and reserved for the Chinese market.

Innovative technologies such as adaptive air suspension, rear-wheel steering and four-wheel drive are among the features of the Audi A7L. The model will go into production later this year.

Another is an SUV named Audi concept Shanghai, but it is being kept under wraps. The all-electric, 4.87-meter-long vehicle is to be unveiled in the second half of 2021.

Another two vehicles that made their world premieres are the Audi A6 e-tron concept and the All New Audi Q5L SUV, both of which are made in partnership with FAW.

The A6 e-tron concept is the first vehicle based on the PPE platform. It is a 4.96-meter-long sportback with a 100 kilowatt-hour battery. It will offer a range of more than 700 kilometers according to the Worldwide Harmonised Light Vehicle Test Procedure, a new protocol that measures fuel consumption and emissions.

Audi said the vehicle will be produced in Europe and China, and is intended for sales worldwide. The 800-volt technology on board allows for extremely fast charging: it takes no more than 10 minutes to recharge energy for 300 km.

With the All New Q5L presented in Shanghai, the brand is enhancing the series with a long wheelbase version. The popular SUV will continue to be manufactured in Changchun.

In 2020, despite the COVID-19 pandemic, more than 727,000 vehicles were sold, the best-ever figure for Audi in China. In the first quarter of this year, more than 207,000 cars were delivered.