Audi is set to reorganise its brand operations in China, with a plan under which SAIC-Audi will exclusively manage the four-letter "AUDI" brand, a range of intelligent connected electric vehicles developed specifically for the Chinese market without the traditional four-ring logo.

AUDI is a Chinese automobile brand co-owned by Audi and SAIC Motor. Unveiled in November 2024, AUDI operates independently of the conventional four-ring Audi marque and positioned as an electric-only brand tailored specifically for Chinese customers.

Meanwhile, the four-ring brand, covering Audi's global petrol and electric vehicle line-ups, will be consolidated under FAW-Audi.

Strategic realignment

The move represents a change to Audi's decade-long dual-partner strategy in China. While the core framework of the plan has been established, detailed implementation remains under negotiation. This includes the division of production and sales responsibilities, the transfer of existing user rights and after-sales services for four-ring models from SAIC-Audi to FAW-Audi, and the integration of dealer interests.

The AUDI brand has launched two models so far: the E5 Sportback and E7x SUV.

The Audi Innovation Technology Centre (AITC) was established on September 3rd, 2026. The joint venture, in which SAIC holds a 49% stake, Audi holds 41% and Volkswagen China holds 10%, is intended to provide the AUDI brand with an independent, end-to-end research and development system focused on intelligent cockpits, advanced driver-assistance systems and AI-defined vehicle technologies.

Market adjustments and challenges

According to a local magazine, SAIC-Audi has begun clearing inventories of its four-ring models in preparation for the transition.

Recent promotional activity has resulted in price reductions. The Audi A7L, which has a guide price of CNY 418,700 (US$ 60,700), is being offered at CNY 262,800, while the Audi Q6, originally priced at CNY 467,600, has been reduced to CNY 279,800. Production data indicates that SAIC-Audi had largely ceased production of four-ring models by July 2026.

The restructuring comes as Audi faces weaker performance in the Chinese market. In the first half of 2026, Audi's deliveries in China declined by 19% year on year, while profits from its China operations fell by 74% to EUR 73 million (US$ 84.8 million).

Analysts quoted by the magazine said that separating the brands could address internal operational issues, but Audi's performance in China will also depend on its ability to accelerate product development and address gaps in electrification and intelligent vehicle technologies.