Audi, a renowned automotive brand, is reportedly engaged in discussions with SAIC Motor Corp, the parent company of MG, a Chinese state-owned automaker, regarding the acquisition of an electric car platform. This move, labeled as “unusual” by Reuters, aims to bolster Audi’s market dominance.
Increasing Pressure on Audi’s Electric Vehicle Sales in China
With Audi’s electric vehicle (EV) sales trailing behind competitors like Tesla and local Chinese brands such as Nio, this development underscores the mounting pressure faced by popular automotive brands in China, the world’s largest EV market.
According to anonymous sources, Volkswagen Audi Group (VAG) is seeking to purchase IM Motors, SAIC’s EV brand. These sources further indicate that the negotiations are progressing.
IM Motors and Audi’s Pursuit of Electric Vehicle Advancement
IM Motors, a luxury EV brand jointly owned by SAIC and Alibaba Group, commenced the delivery of their L7 sedan in June 2022. While Audi has not officially confirmed the ongoing discussions, SAIC has chosen not to comment on the matter.
Reuters could not ascertain the details of Audi’s offer for the EV platform or whether SAIC would continue producing the L7 car. Nonetheless, various indigenous media reports have alluded to this significant development.
Audi’s CEO Highlights the Urgency to Meet Rising EV Demand in China
Markus Duesmann, the CEO of Audi, who is set to retire in September, expressed the need for accelerated model development to meet the surging demand for EVs, particularly in China. Duesmann acknowledged that the scarcity of Audi vehicles tailored for the Chinese market has negatively impacted the company’s sales.
Audi and Porsche Collaborate on “Premium Platform Electric” in China
Audi and Porsche, under joint efforts, are also in the process of creating a new EV platform called “Premium Platform Electric” (PPE). This platform will be utilized for manufacturing vehicles at their new facility in Changchun, China, scheduled to commence operations by 2024. Company representatives have stated that the plant will incorporate adjustments specific to the Chinese market for the PPE platform.
