Audi and FAW to Build EVs for Chinese Market

At the moment, China is the largest automotive market in the world and it’s going to become especially popular for EV manufacturers. Due to China’s desire to expand its EV market and infrastructure, many Chinese companies are working with other automakers to develop electric vehicles together. Audi and its longtime Chinese partner FAW have signed a Memorandum of Understanding (MoU) that defines a framework for joint production of EVs built on Audi’s new PPE architecture.

Essentially, the two companies have agreed to develop a new company together that will develop EVs for the Chinese market based on the new PPE platform. PPE is Audi’s all-electric scalable architecture developed in-joint with Porsche and will underpin all upcoming larger EVs. While all smaller Audi EVs will be built on the VW Group’s MEB architecture, PPE will underpin larger cars.

Both Audi and FAW have agreed to build several new EVs based on the PPE platform starting in 2024.

“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 and responsible for the China-business.

“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.”

Audi and FAW have already been working together to develop EVs. Both the all-electric Audi Q2L e-tron and the plug-in hybrid A6L TFSIe are built in-joint by the two brands for the Chinese market. Even the Audi e-tron, which was previously built in Belgium and imported to China, is now being built for the Chinese market in Changchun, China.

Audi has seen healthy growth in sales in China. From January to September 2020, Audi has sold 512,081 vehicles and is looking to increase that number. With this new deal, more and more EVs will be able to be sold in China and the brand will gain a larger EV foothold in the largest automotive market in the world.