Reports emerged earlier this week that German brand Audi was planning to buy an electric vehicle platform from a Chinese rival to establish a strong presence in the highly competitive domestic market after its parent company Volkswagen announced multiple delays in the production of the Scalable Systems Platform (SSP).
Some of the speculated strong candidates were Geely, BYD’s FinDreams, and Foxconn. Notably, these major companies are actually allowing other automakers to use their platform, further accelerating the shift towards electric mobility.
Now, sources familiar with the matter claim that Audi is already at an “advanced stage” in negotiations with China-owned SAIC.
Audi to partner with SAIC for EV platform
Two insiders revealed to Reuters that Audi and SAIC are now in advanced talks to purchase an EV platform from the state-owned automaker’s business unit, IM Motors.
The move is reportedly crucial as Audi is trying to revive declining sales in the world’s largest auto industry, dominated by domestic brands and Tesla. For context, Audi only sold over 3,000 units in Q1 2023, while another German brand BMW had 21,646 sales. Even More, Tesla reported sales of 137,429 in the same quarter, per the China Association of Automobile Manufacturers.
For context, IM Motors is a premium EV startup that began delivery of its maiden model L7 sedan last year. As mentioned, it is a business unit of SAIC, with major investors including e-commerce behemoth Alibaba Group.
Unfortunately, Audi and SAIC have not yet confirmed the report.
Nonetheless, the possible acquisition of an EV platform is undoubtedly a big deal for Audi’s own EV push, which significantly stalled after the delay in its parent company’s SSP development to 2029 from the initial target of 2026. It has postponed Audi’s launch of new EVs, such as the Q6 E-Tron, and hindered the continuance of the Artemis project for an autonomous flagship EV.
It is also worth noting that this move marks the first time Audi intended to buy a platform from another automaker. It has only utilized VW’s EV-dedicated MEB platform for models sold in China.
Apart from planned direct purchase, the German brand has also partnered with Porsche for the development of Premium Platform Electric (PPE) that will support the Porsche Macan Electric and the delayed Q6 e-tron by the end of 2024. Audi will build its new models at a Changchun factory it is currently developing.
For reference, Audi only has two EV offerings for Chinese customers, including the Q4 E-Tron and Q5 E-Tron.
See Also:
- Audi’s “close the loop” project shows how many car parts are recyclable
- New electric MTB From Audi And Italian motorcycle manufacturer Fantic
- Audi may develop its first EV production plant in US, to qualify for the federal tax credits
- Audi to launch the RS6 e-tron with wider and larger wheels in 2024
- Audi to launch a rugged 4×4 EV by 2027 to compete with Defender and G-Class
Audi does not have enough time to wait for VW’s SSP development and production, as demonstrated by its sharp sales declines in the previous quarters. The brand now needs to move fast to revive its sales and build a strong presence in the Chinese market, considering it competes with giants like Tesla and BYD.
