Audi And FAW Establish EV Joint Venture In China

In a bid to expand its presence in China, Audi signed a memorandum of understanding (MoU) with FAW, defining the framework for the joint production of electric vehicles based on the German carmaker’s PPE architecture, developed jointly with Porsche. Come 2024, several all-new Audi EV models will be produced for the Chinese market on this platform.

The MoU was signed during the Germany-China Automobile Conference, currently held in Changchun.

Audi already produces cars at four different locations in China through the FAW-VW joint venture: Changchun, Foshan, Tianjin and Qingdao, adding up to a total capacity of roughly 700,000 units.

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“This decision emphasizes the strategic importance of the Chinese market. We are thus actively pushing forward with innovations locally,” said Audi chairman Markus Duesmann. Meanwhile, Audi China president Werner Eichhorn had this to add: “This is a further milestone in our electrification strategy for the Chinese market. We are also confirming our commitment both to our longstanding Chinese partner FAW and to our activities in China, which we are now taking to a new level.”

Right now, Audi and FAW are jointly producing the all-electric Q2L e-tron and the A6L TFSIe plug-in hybrid model, while the previously-imported Audi e-tron has been produced in Changchun since the end of last month. By 2025, Audi aims to have electrified vehicles make up a third of its Chinese sales.

From January through September 2020, Audi sold 512,081 vehicles in China, marking a 4.5% growth compared to last year despite the interruptions caused by the COVID-19 pandemic.