Audi to produce A4L, Q5 in 2nd Changchun plant

Shanghai, August 19 (Gasgoo.com) German automaker Audi expects its second plant in northeast China to start operation in September, which will produce the A4L and Audi Q5 to meet fast-growing demand for premium cars in the country, state media reported today.

The one-billion-yuan ($146.4-mln) plant in the northeastern city of Changchun will double the China production capacity of Volkswagen's premier brand Audi to 200,000 units a year. Audi cars are currently made in China through FAW-VW, a joint venture between FAW Group and Volkswagen AG.

The first model to roll off the new assembly line of the new plant will be the Audi A4L sedan, to be followed soon by Q5 SUV, said an Audi sales executive at the venture, adding that the new factory "is Audi's optimum assembly plant globally which in theory will be able to produce all Audi models."

A4L, a derivative of Audi's popular mid-size sedan that sports a longer wheelbase, is now made at Audi's first China plant, also based in Changchun city. The Q5 is being imported to China for sale before the new model is locally built later this year.

Audi's China sales rose by 11% to a record 66,866 cars in the first half this year, with sales in June up 28% to 13,265 units. Its sales in China including Hong Kong jumped nearly 43% to 13,399 units in July, marking another monthly record.

The carmaker will also expand its sales network, increasing dealerships to more than 210 in 100 Chinese cities by 2012. Audi currently has 146 dealerships in mainland China, most of them in big cities such as Beijing, Shanghai and Guangzhou.