Audi is preparing to reorganise its operations in China, with SAIC-Audi expected to focus exclusively on the AUDI brand, while the traditional four-ring Audi brand will be consolidated under FAW-Audi
The AUDI brand is a joint venture between Audi and SAIC Motor. Unveiled in November 2024, it operates separately from the traditional Audi marque and focuses on intelligent connected electric vehicles developed specifically for the Chinese market. Unlike conventional Audi models, AUDI vehicles do not use the four-ring logo
So far, the AUDI brand has launched two models, the E5 Sportback and E7x SUV
Under the planned restructuring, FAW-Audi would take responsibility for the traditional four-ring brand, covering Audi’s global petrol and electric vehicle line-up. The move would mark a significant change to Audi’s long-running dual-partner strategy in China
While the broad framework has been established, several details are still being negotiated. These include how production and sales responsibilities will be divided, the transfer of existing customer rights and after-sales services for four-ring models from SAIC-Audi to FAW-Audi, and how dealer interests will be handled
Audi and SAIC are also developing the AUDI brand’s technology capabilities through the Audi Innovation Technology Centre (AITC), which was established on September 3, 2026. The joint venture is owned 49% by SAIC, 41% by Audi and 10% by Volkswagen China
The AITC is intended to provide the AUDI brand with an independent research and development system covering areas such as intelligent cockpits, advanced driver-assistance systems and AI-defined vehicle technologies
According to a local magazine, SAIC-Audi has already started clearing its inventories of four-ring models ahead of the transition. Recent promotions have resulted in significant price reductions, with the Audi A7L dropping from a guide price of CNY 418,700 (US$60,700) to CNY 262,800. The Audi Q6 has also been reduced from CNY 467,600 to CNY 279,800
Production data reportedly shows that SAIC-Audi had largely stopped producing four-ring models by July 2026
The restructuring comes as Audi faces increasing pressure in China. During the first half of 2026, Audi deliveries in the country fell 19% year on year, while profits from its China operations dropped 74% to EUR 73 million (US$84.8 million)
Analysts cited by the magazine said separating the two brands could help address some internal operational issues. However, Audi’s longer-term performance in China will also depend on how quickly it can develop new products and close gaps in electrification and intelligent vehicle technology
