Audi will split its logos between its two Chinese partners as the Volkswagen AG unit tries to turn around a protracted sales slump. Under new agreements, China FAW Group will focus on developing Audi's luxury combustion-engine and electric vehicles under its traditional four-ring branding. Meanwhile, SAIC Motor Corp. will focus on AUDI, written in all caps without rings, with EVs tailored for the Chinese market, according to a WeChat statement Monday.
Audi has been struggling in China. It delivered about 618,000 vehicles there in 2025, down 5% from a year earlier. The decline is accelerating this year, with deliveries falling about 19% to 233,000 vehicles. The restructuring reflects the wider challenge facing luxury European automakers as they confront weakening demand and mounting price pressure in China. Local carmakers such as BYD Co., Xiaomi Corp. and Aito have expanded into higher-priced segments, using rapid product cycles and software-led features to compete with established foreign brands.
China remains Audi's largest single market, accounting for roughly 38% of its global deliveries last year, which makes a turnaround there critical to its broader performance. Audi also recently hired Jeff Zhang, a former executive of local automaker Chery Automobile Co., as its China unit president. The four-ring brand's lineup includes the A6L e-tron, Q6L e-tron and new generations of the A5L and A6L. Separately, AUDI launched its first model, the E5 Sportback, in 2025, followed by the E7X SUV in 2026. The partners have also set up a dedicated AUDI innovation and technology center in Shanghai.
SAIC Audi can continue selling four-ring models through the end of 2027, while after-sales services for both brands will continue without disruption. The companies did not disclose financial terms or sales targets for either brand.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing