Audi has been active in China since 1988, collaborating with the state-owned automaker FAW. In 2021, a second partner joined the collaboration: the similarly state-owned SAIC Group, under which MG Motor operates. Currently, both joint ventures produce vehicles bearing Audi’s iconic four rings. The joint venture with SAIC has introduced the new sub-brand AUDI (in uppercase letters but without the four rings), which already has two models on Chinese roads: the electric estate car E5 Sportback and the electric SUV E7X.
Now, according to a report by the usually well-informed Chinese business magazine Caijing, Audi intends to restructure its two partnerships. SAIC Audi is set to withdraw completely from the traditional four-ring business and focus exclusively on the all-electric AUDI sub-brand. Meanwhile, the entire classic four-ring portfolio — including combustion engine models and electric vehicles from the e-tron family — will be consolidated under FAW Audi.
Audi CEO Döllner praises both joint ventures
Although Audi CEO Gernot Döllner, according to the report, denied speculation about merging the joint ventures as recently as March 2026 and reaffirmed the dual-partner strategy, he emphasised that the current cooperation model with the two Chinese partners was “extremely advantageous” for the brand’s development. However, the dramatic collapse of Audi’s earnings in China in the first half of the year (with joint venture profits plunging by 74 per cent year-on-year to just €73 million) has reportedly created significant pressure for action within Audi’s board, according to Caijing.
