Audi is overhauling its long-standing dual-partner corporate footprint in China through a major structural realignment.
Under a new strategic plan for the Chinese market, SAIC-Audi will transition to exclusively managing the four-letter “AUDI” marque—a dedicated sub-brand of intelligent connected electric vehicles developed specifically for the Chinese market that intentionally omits the iconic four-ring emblem.
In contrast, Audi’s global portfolio of internal combustion engine (ICE) and electric vehicles sporting the traditional four-ring badge will be consolidated entirely under its northern joint venture, FAW-Audi.
The move marks a departure from Audi’s decade-long strategy of distributing overlapping four-ring vehicle lineups across both FAW and SAIC networks.
While the fundamental framework has been determined, high-level negotiations are ongoing regarding the division of production and sales responsibilities, the transition of existing SAIC-Audi owner warranties and aftersales servicing rights to FAW-Audi, and the alignment of retail dealer networks.
The Lettered “AUDI” EV Marque and AITC R&D Hub
Co-owned by Audi and SAIC Motor and first unveiled in November 2024, the capital-letter “AUDI” brand operates independently of the global four-ring marque as a digital-first, electric-only nameplate built around the technological preferences of younger Chinese consumers.
To date, the AUDI brand has introduced two core production vehicles:
- AUDI E5 Sportback
- AUDI E7x SUV
To give the new venture autonomous development capabilities, the Audi Innovation Technology Centre (AITC) was formally established on September 3, 2026.
Ownership in the engineering joint venture is divided among:
- SAIC Motor: 49% stake
- Audi AG: 41% stake
- Volkswagen Group China: 10% stake
AITC operates as a dedicated, end-to-end research and software development hub tasked with engineering intelligent digital cockpits, high-level autonomous driving and driver-assistance systems, and AI-defined vehicle software stacks tailored specifically for the mainland Chinese market.
Four-Ring Inventory Clearance and Steep Discounting
In preparation for the structural handoff, SAIC-Audi has begun clearing remaining showroom inventory of its legacy four-ring models. Factory production records reveal that SAIC-Audi largely wound down manufacturing of its four-ring vehicles by July 2026.
Aggressive promotional price reductions have followed across domestic retail channels:
- Audi A7L: Carries an official guide price of CNY 418,700 (approx. US$ 60,700), but is currently discounted to CNY 262,800.
- Audi Q6: Listed with an original guide price of CNY 467,600, with showroom pricing slashed down to CNY 279,800.
Earnings Pressure Accelerates Strategic Pivot
The dramatic brand division arrives amid mounting operational headwinds for the German luxury automaker in the world’s largest automotive market.
During the first half of 2026, Audi’s vehicle deliveries in China contracted by 19% year-on-year, while operating profits generated from its Chinese operations plummeted 74% to EUR 73 million (US$ 84.8 million).
By separating the legacy four-ring heritage line under FAW from the localized, agile EV brand under SAIC, Audi aims to eliminate dealer infighting, reduce duplicate marketing expenditures, and accelerate time-to-market for connected intelligent software—addressing critical competitive gaps against fast-moving domestic EV rivals.
