Audi plans further localization in China

Shanghai (Gasgoo)- “We have a good cooperation relationship with FAW-VW and at the moment, there will be no changes in the stake ( of the joint venture).” Thomas Owsianski, President of Audi China, said in an interview when he was asked whether his company will increase stake in the joint venture.

On October 11, BMW Group said it intends to increase its stake in its joint venture BMW Brilliance Automotive (BBA) and the group has signed a corresponding agreement with its China partner Brilliance China Automotive Holdings (CBA).

As to whether they will adopt new stake structure in the new joint venture with SAIC Group, in accordance with the policy, Alexander Seitz, Member of the Board of Management of AUDI AG Finance, China, Compliance and Integrity, revealed they are still discussing details of the cooperation.

Seitz said that in July, Audi bought 1% stake in SAIC-VW. Thus, the luxury brand and its parent company, VW Group hold a total of 50% stake in SAIC-VW.

2018 is the thirtieth anniversary for Audi’s entrance into China market. Apparently, both executives have clear picture about China auto market. They all think that rapid changes place Audi in challenging situation. With the brand’s advantages over other brands narrowed, they will introduce large-scale reform and strategic planning.

The brand wants further localization, in personnel, manufacturing, financing, sales and R&D. They summarize the strategy as “In China, For China”. Alexander Seitz pointed out that “if we want to enrich our product portfolio and increase our sales in China, we have to took root in the largest auto market and be much closer to the market.”