The joint venture, announced on Thursday, will serve as a development centre for technologies aimed specifically at the Chinese premium-vehicle market, according to Audi in a statement.
Unlike Audi’s traditional branding, the new venture is focused on the four-letter, all-capital AUDI brand, which the companies are developing specifically for Chinese consumers. The initiative reflects the partners’ effort to respond more quickly to changing customer preferences in a market where smart-vehicle technology, artificial intelligence and advanced connectivity have become increasingly important.
The Shanghai-based innovation hub will concentrate on several key areas, including vehicle and driving-control technologies, AI-powered immersive smart cockpits and next-generation advanced driver-assistance systems. These technologies are expected to be tailored to the needs and expectations of premium customers in China.
Audi and SAIC did not disclose the ownership structure of the new venture, leaving details of the partnership arrangement undisclosed.
As part of the collaboration, the two companies plan to jointly develop four all-new AUDI models using the Audi ADP 2.0 (Advanced Digitized Platform). The dedicated architecture has been designed for next-generation intelligent and connected vehicles and is intended to provide the technological foundation for the new range.
The planned models are expected to broaden and complement Audi’s existing product portfolio in China, giving the brand a wider presence in one of the world’s largest and most competitive automotive markets.
The first of the four new vehicles is scheduled to be launched in 2028, marking the beginning of what Audi and SAIC envision as a new phase for the AUDI brand in China.
The partnership comes as global automakers increasingly seek to localise vehicle development in China, where consumers have shown strong demand for sophisticated digital features, connected-car services, artificial intelligence and increasingly advanced driver-assistance technologies.
By establishing a dedicated innovation operation in Shanghai, Audi and SAIC are positioning the AUDI brand to develop products and technologies more closely aligned with Chinese market requirements rather than relying solely on vehicle programmes developed for global markets.
The four planned models, built on the ADP 2.0 platform, will therefore represent a significant test of the companies’ ability to combine Audi’s premium-brand expertise with SAIC’s knowledge of the Chinese automotive market and rapidly changing consumer preferences.
With the first model not due until 2028, the new innovation hub is expected to play a central role in developing the technology and vehicle portfolio that will underpin the AUDI brand’s next stage of growth in China.