car manufacture

Audi to Build Electric Cars Geared to Chinese Buyers From 2024

(Bloomberg) — Volkswagen AG’s Audi is expanding its partnership with Chinese manufacturer FAW as the German premium brand seeks to build more battery-powered cars geared to customers in its largest market.



graphical user interface, website: A visitor looks at an Audi e-trion car at the Beijing Auto Show in Beijing on September 27, 2020.


© Photographer: WANG ZHAO/AFP
A visitor looks at an Audi e-trion car at the Beijing Auto Show in Beijing on September 27, 2020.

Audi and FAW on Tuesday signed a memorandum of understanding to start a company that will produce electric cars for the Chinese market from 2024, Audi said in a statement. The new cars will be designed to meet the requirements of local premium buyers and use the PPE electric platform developed with Porsche, Audi said.

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“This decision emphasizes the strategic importance of the Chinese market,” Chief Executive Officer Markus Duesmann said. The companies signed the agreement during a German-Chinese car conference in Changchun.

After entering the country in the late 1980s with FAW and building an early lead, Audi sales rose and the marquee became the quasi-official ride of high-ranking government officials and privileged businessmen. Yet in recent years, Audi has seen rising competition from Daimler AG’s Mercedes-Benz and BMW AG, which have won over buyers with new designs.

China’s government has poured upwards of $30 billion into nurturing its electric-vehicle industry, building the world’s largest market for battery-powered cars. Higher subsidies in several countries in Europe have spurred sales there, meaning the region looks increasingly likely to outpace China soon, according to a report by research firm Jato Dynamics.

Audi’s deliveries in China rose 4.5% to 512,081 vehicles after the first nine months of this year, the best result in its 30-year history in the country, the company said. Audi plans to generate about 40% of its unit sales in China with electrified cars by 2025.

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