Foraying into the world of premium electric mobility, German carmaker Audi and FAW, the Chinese state-owned automotive manufacturing company signed a memorandum of understanding (MoU) for the joint production of EVs based on the Premium Platform Electric (PPE) platform.
The MoU signed between the two companies at the Germany-China Automobile Conference in Changchun, Northern China defines the framework for the establishment of a company to produce all-electric Audi models on the PPE platform. Audi further announced that in the future, it will bring to China the PPE which was developed jointly with Porsche to further advance the transformation in its largest market.
“This decision emphasizes the strategic importance of the Chinese market. We are thus actively pushing forward with innovations locally,” said Markus Duesmann, Chairman of the Board of Management of AUDI AG, responsible for the China-business.
With this agreement, Audi is affirming its cooperation looking with its longstanding joint venture partner FAW. Additionally, it is also systematically following the path of sustainable mobility in China and is specifically gearing its locally produced drive portfolio towards the requirements and wishes of Chinese premium customers. The plans for the new company are still being developed. Production is scheduled to start in 2024.
Audi already produces at four locations in China in the FAW-VW joint venture: in Changchun, Foshan, Tianjin, and Qingdao, with a total capacity of approximately 700,000 vehicles.
The two companies are currently jointly producing the all-electric Q2L e-tron and the plug-in hybrid A6L TFSIe. In addition, the previously imported Audi e-tron has been produced in Changchun since the end of September. In the coming years, Audi will offer or localize further fully electric models of the e-tron family in China. By 2025, Audi plans to generate approximately one-third of its unit sales in China with electrified cars.
“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,” said Werner Eichhorn, President of Audi China.