Growth strategy

Audi China President Juergen Unser described the joint venture as an important part of the carmaker's new growth strategy in China, its largest market globally.

"In the years to come, we want to put an even stronger emphasis on China. The goal of our new strategy is to make Audi in China even more Chinese," he said.

Unser added that one of the main aims is to intensify localization in terms of production and research and development, or R&D.

"We will increase our budget for R&D, hire new talent especially for connectivity and electronics development, and invest heavily in new technologies," he said.

Audi is just one of the many international carmakers who are stepping up efforts to seize opportunities in China's new energy vehicle, or NEV, market, the largest worldwide for the past seven years.

Last month, NEV sales in China reached a record 596,000, a rise of 132 percent year-on-year, according to the China Association of Automobile Manufacturers, which estimates that such sales could reach 5.5 million this year, compared with overall vehicle sales of 27 million.

Last month, BMW, also from Germany, unveiled a new plant in Shenyang, capital of Liaoning province－its third car factory in China operated with domestic manufacturer Brilliance Auto.

The plant mainly produces electric cars, including the i3, a mid-size sport sedan designed by BMW exclusively for the Chinese market.

Construction of the plant started in 2020, with BMW investing 15 billion yuan ($2.22 billion) in the project, its largest investment in China for 19 years. BMW Brilliance's annual output will rise to 830,000 vehicles, up from 700,000 last year.

Shenyang is now home to the biggest production base in BMW's worldwide network.

Jochen Goller, president and CEO of BMW Group Region China, said, "The expansion of our production footprint in China shows that we are preparing for further growth in the world's largest electric car market and are confident in China's long-term prospects."

Since 2010, BMW Brilliance has invested about 83 billion yuan on building a production system integrating R&D, procurement, and vehicle output.

When the new plant was unveiled, Wang Xinwei, Party secretary of Shenyang, said, "The years of in-depth cooperation between Shenyang and BMW have made us realize that the best relationship between a city and an enterprise is common growth and creating the future together."

BMW has set down firm roots in Shenyang, while in Shanghai, United States carmaker General Motors has built plants and set up research facilities since arriving in the city in 1997.

Last year, GM expanded the GM China Advanced Design Center in the city and reached an agreement with domestic startup Momenta on a $300 million investment to develop autonomous driving technology.