Audi splits China brands between FAW and SAIC partnerships

Marcus Bennett

SAIC-Audi will distribute Audi four-ring models through the end of 2027, and Audi has assigned the China joint venture entirely to the ring-free AUDI brand. Audi confirmed the reorganization on Chinese social platform WeChat through new agreements with FAW and SAIC Motor, its longstanding Chinese partners.

Audi first reported the potential move at the beginning of September; the signed agreements now formalize what the company calls its “two brands, two partners” strategy. The company did not attach plant capacity or production volumes to the agreements.

Under the arrangement, FAW-Audi, established in 1988, will lead the classic four-ring brand. SAIC-Audi, founded in 2021, will concentrate on AUDI, an uppercase marque without rings introduced in 2025. Audi says the agreements will differentiate positioning, adapt partner strategies, realign distribution and help both brands address China with greater speed and precision.

What does this change for plant and distribution teams?

SAIC-Audi will concentrate on AUDI electric vehicles, including the category China calls New Energy Vehicles (NEVs). The venture already introduced the E5 Sportback electric estate and E7X electric SUV, and Audi says AUDI will continue offering electric models.

The SAIC partnership has officially opened the AUDI Innovation Tech Center (AITC) in Shanghai, dedicated exclusively to the ring-free marque. Audi and SAIC say the center will deepen collaboration across the entire value chain for future AUDI vehicles.

SAIC-Audi will no longer produce the four-ring A5L Sportback, A7L and Q6 with internal combustion engines. Media reports previously said SAIC-Audi had sharply reduced or stopped those models’ production; Audi’s announcement confirms the transfer without providing output figures, plant schedules or a capacity target.

SAIC-Audi will remain active in distributing four-ring models through the end of 2027. It also will provide aftersales and service beyond that date, separating the model-production decision from the longer customer-support obligation.

FAW-Audi retains a different portfolio. The 1988 joint venture will continue producing premium vehicles with internal combustion engines as well as NEVs.

It also is developing Chinese long-wheelbase variants of Audi’s PPE-based electric vehicles: the A6L e-tron and Q6L e-tron. Audi did not disclose launch dates, annual volumes or capacity changes for either model, so the development program remains a stated plan rather than a quantified production commitment.

Brand rationale and leadership

The division gives each joint venture one primary brand and a clearer product mandate. FAW keeps the long-established four-ring portfolio, while SAIC carries the new AUDI range and its dedicated Shanghai technology center.

Outgoing Audi China President Johannes Roscheck said: “Thanks to a clearer strategic focus and differentiated brand positioning, we are laying a solid foundation for Audi’s long-term and sustainable development in China.” He said the strategy supports local partners in providing Audi customers with first-class products and experiences.

In November, Roscheck will be succeeded as Audi China president by Jeff Zhang, a former Chery manager. The announcement comes as Audi’s local partners separate brand mandates, vehicle portfolios and distribution channels.

FAW CEO Liu Yigong said FAW-Audi will retain a customer-centric approach and advance combustion engines, hybrids and fully electric intelligence to meet varied user needs. SAIC boss Jia Jianxu said: “What SAIC must do is to truly align the advanced industrial ecosystem, technology system, and Audi’s luxurious tradition.”

He described AUDI as a new model of joint-venture cooperation built on Audi’s Vorsprung durch Technik heritage. The combination is intended to strengthen Audi’s competitive position in China.

Next milestones

Key checkpoints are the November leadership transition, the AITC operating ramp, and model launch dates and production timing for the A6L e-tron and Q6L e-tron. Manufacturers should also watch SAIC-Audi’s implementation of the model-production transfer and the 2027 distribution deadline, including service continuity beyond it.

Audi has confirmed the partner assignments and distribution horizon. The plant-level consequences, output targets, capacity milestones and launch schedules still require confirmation from production data and formal announcements.