Audi is ditching its iconic logo on its new electric cars in China, marking a major shift for the German automaker.
Audi has decided not to affix its famous four rings logo on its new electric cars developed in China, in partnership with SAIC, for the Chinese market. This strategy aims to strengthen the local identity of the vehicles and to highlight their originality, in response to the strong competition from Chinese manufacturers on the electric vehicle market.
By working closely with local suppliers like CATL and MomentaAudi hopes to better adapt to the preferences and needs of Chinese consumers. This repositioning could also influence the strategies of other international automakers.
Audi repositioning on the Chinese market
Audi has reportedly decided not to display its famous four-ring logo on its upcoming electric cars developed in China for the Chinese market. This decision, unofficial for the moment and reported by Automotive News Europeaims to strengthen the local identity of Audi in partnership with the Chinese manufacturer SAIC. More than a change, it is a turning point in the way Audi perceives and exploits the Chinese market, which has become an essential battleground for international car manufacturers.
The collaboration between Audi and SAIC involves the development of a co-developed automotive architecture, meaning an increased reliance on local suppliers and technologies. This approach is also symbolized by the internal project “Purple”, a series of electric vehicles that will adopt this new philosophy. The choice not to use the logo can also be seen as a way of emphasizing the originality of these vehicles, which are not just adaptations of Western models but are truly designed to meet the needs and tastes of the Chinese public. The Chinese electric vehicle market is booming, with local manufacturers dominating the sector by offering technologically advanced vehicles adapted to local preferences.
In response, Audi and other international automakers are seeking to strengthen their competitiveness in Chinaa market where competition is fierce and where the market shares of foreign companies are being undermined by innovative and dynamic local players. Audi, despite its reputation and prestige, sold fewer than 10,000 electric cars in China in the first six months of 2024. By comparison, Chinese brands like Nio and Zeekr each sold about eight times as many vehicles during the same period..
Foreign manufacturers, including Audi, must rethink their plans to succeed in the world’s largest car market.
A market in full transformation
As part of the implementation of this new strategy, Audi is using a battery supplied by CATL and an advanced driver assistance system (ADAS) developed by the Chinese startup Momenta. In addition, the electrical architecture of the “Purple” series will be based on that of IM Motors, SAIC’s electric vehicle brand.
These technological choices reflect the increasing integration of local components in vehicles intended for the Chinese market, thus reinforcing the relevance of these models to local consumers. The development of cars specially designed for China also allows foreign manufacturers to familiarize themselves with the latest features and tastes of Chinese consumers.
However, These vehicles are not intended for export to Europe or other markets initially, which shows a cautious and locally focused approach. Audi’s decision to change its approach in China could have broader implications for the global auto industry. While other manufacturers such as Volkswagen are also exploring local partnerships and technological innovations tailored to Asian markets, the question arises whether this trend will continue and intensify globally.
Audi’s ability to adapt its plans in response to changing dynamics in the Chinese market could serve as a model for other brands looking to strengthen their presence in international markets.
Source: www.autoplus.fr
