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SAIC-Audi project not to sell vehicles before 2022

Abigail From Gasgoo| December 01 , 2019

Shanghai (Gasgoo)- Audi is said to be making a plan with partners in China to boost sales and improve its brand value in three years. Besides, the SAIC-Audi project will not sell products before 2022, but the project has been moving forward.      

According to Gaby-Luise Wüst, president of Audi China, the new three-year scheme would be revealed at Audi Dealer Meeting in December without elaborating.  

SAIC, Audi, FAW, three-year plan, China automotive news

(photo source: FAW-VW)

In November, 2016, the project between SAIC and Audi was unveiled. But it was confronted with strong disagreement from FAW-VW Audi and its dealers. Afterwards, Audi, together with its local partner FAW Group, defined 21 key strategy fields with respective goals in a 10-year plan in 2017 January. Just several months later, Audi, FAW Group, FAW-VW and Audi dealer association, signed an agreement to ensure the sales volume of FAW-VW Audi can reach 900,000 units by 2022. It also stipulates Audi is not allowed to sell products through another party in China before January, 2022. 

SAIC, Audi, FAW, three-year plan, China automotive news  

(photo source: FAW-VW)

However, Audi’s performance in the Chinese market leaves something to be desired, especially under the endorsed 10-year project. In the first ten months of 2019, Audi’s sales in China merely rise 2.1% to roughly 551,000 units, while those of Mercedes-Benz (not including Smart), BMW (including Mini) were around 583,000 and 587,000 units respectively and their sales growth rates were higher.

SAIC, Audi, FAW, three-year plan, China automotive news

(photo source: SAIC)

Actually, new progress has been made between Audi and SAIC. In June, 2018, the German brand acquired 1% equity in SAIC Volkswagen joint venture (JV). And the JV saw its MEB plant in Shanghai start trial production in November this year. Just before the Auto Guangzhou 2019, Audi China suggested it would not sell products in the biggest auto market through the Shanghai-headquartered manufacturer before 2022.            

Besides, the global sales of Audi totaled about 1.56 million units from Jan. to Oct. this year while the respective sales of Mercedes-Benz (including Smart) and BMW were 2.01 million and 2.02 million units. The SAIC-Audi project is expected to increase its sales and cement its position in China’s luxury vehicle segment.       

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