Audi's Electrifying Endeavor with SAIC

22 Jul 2023

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Audi's Electrifying Endeavor with SAIC

Chinese automaker SAIC and German automaker Audi have formally declared their partnership for future electric vehicle (EV) initiatives. Car Expert reported the announcement stating that Audi was in negotiations with SAIC to acquire an EV platform, which is owned by IM Motors—a collaboration between SAIC Motor, Zhangjiang Hi-Tech, and Alibaba Group.

Collaboration for EV Platform

Last week, Reuters revealed Audi's discussions with SAIC to secure access to the EV platform developed by IM Motors. As Audi faces delays in the development of its Scalable Systems Platform (SSP), it is now exploring partnerships beyond the Volkswagen Group. The platform, already utilized in the IM L7 premium electric sedan and the LS7 electric SUV, could be the key to enhancing Audi's presence in the electric vehicle market.

Expanding EV Model Range

Audi's electric vehicle sales in China have been trailing behind its competitors, as reported by the China Association of Automobile Manufacturers (CAAM). In contrast to BMW's 21,646 sales and Tesla's 137,429 sales during the first quarter, Audi managed to sell just over 3,000 EVs. To strengthen their position, Audi plans to build electric vehicle models based on its concept cars Activesphere, Skysphere, Urbanphere, and Grandsphere on the IM Motors platform.

Volkswagen Group's Platform Sharing Strategy

The Volkswagen Group, encompassing brands like Skoda, Seat, Porsche, Bentley, and Bugatti, aims to achieve cost-cutting and economies of scale through platform sharing. Previously, the group developed each of its platforms in-house, including the MEB electric vehicle platform, the MQB front- and all-wheel-drive internal combustion engine platform, and the MLB longitudinal ICE platform. However, rising development expenses are pushing the group to explore partnerships like the one with SAIC to ensure sustainable growth.

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