Audi and MG/LDV parent company SAIC are doubling down on the confusingly named, China-only AUDI brand.
Late last week the two companies announced they would establish an Innovation and Technology Centre in Shanghai dedicated to the AUDI brand.
According to Audi and SAIC, the centre will focus on “China-specific, intelligent electrification technologies and whole-vehicle development”, as well as “AI-powered, immersive smart cabins and advanced driver assistance systems” for the Chinese market.
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They also confirmed the next-generation Advanced Digitised Platform (ADP) will serve as the basis for four new AUDI models that will be launched in China in the “coming years”, although exact timing has yet to be confirmed.
The AUDI brand was created in 2024 to tap into the Chinese market’s love of electric vehicles (EVs) with tech-heavy spec sheets and screen-laden interiors. Development times would be slashed by using existing SAIC platforms and technology.
The new China-specific brand would be further differentiated from its European sibling by a different styling language, forgoing Audi’s iconic four-interlocking rings and single-frame shield grille.
When AUDI’s first model, the E5 Sportback, went on sale in September 2025, things seemed promising with the brand notching up 10,000 orders in the first 30 minutes after order books were opened. Not all of those orders turned into sales, however, with Car News China reporting just 7070 have been sold to the end of January 2026.
To counter slow sales, the model was given a temporary price cut of ¥30,000 (A$6100). Buyers could also opt for a five-year loan with zero per cent interest.
The pure electric E5 is underpinned by the current version of the ADP, which was developed by SAIC. It has a 572kW dual-motor all-wheel drive setup capable of completing the 0-100km/h run in 3.6 seconds, and a 100kWh battery is standard.
This drivetrain, and indeed the Advanced Digitised Platform, is available in Australia in the range-topping MG IM5 liftback.
ADP will also serve as the basis of the E7X SUV that will make its full debut this week’s Beijing motor show. The E7X is expected to be available in both electric and extended-range electric vehicle (EREV) form. The AUDI brand will launch a third model in 2027.
As we’ve documented, thanks to the rapid acceptance of electric drivetrains and the rise of local brands, China has gone from being the Volkswagen Group’s golden goose to its problem child.
Volkswagen lost its title as the country’s top-selling brand in 2023 to BYD. Sales in China peaked in 2019 when the German automaker shifted 4.23 million vehicles. In 2025, the Volkswagen Group sold just 2.69 million cars in China, an 8.0 per cent drop on 2024, and 36.4 per cent or 1.54 million units down from the company’s high point.
The first victim of the automaker’s slide is Skoda, which announced last month it would be withdrawing from the Chinese market by the middle of 2026. The Czech brand’s sales slid from 341,000 in 2018 to just 15,000 last year.
In addition to creating AUDI in conjunction with SAIC, the Volkswagen brand has also partnered up with Xpeng to help it develop a number of China-specific EV models.