Audi Partners China's SAIC On Joint EV Projects

Audi and SAIC Motor Corp. have agreed to collaborate on electric-vehicle projects as the German premium brand tries to catch up with competitors in the key EV market.

Audi announced on Thursday that it has reached an agreement with state-owned SAIC to accelerate the electrification of their portfolios as China's auto market rapidly shifts to EVs.

Audi is under pressure to increase sales, particularly in China, and is said to be considering using a platform owned by IM Motors, SAIC's premium EV brand.

SAIC's chief engineer, Zu Sijie, told reporters on Thursday that the automaker is expanding its collaboration with Audi, and that licencing or joint development are options for future projects. Audi's parent company, Volkswagen Group, already collaborates with SAIC to produce gasoline-powered vehicles.

Audi's EV push has stalled as a result of VW Group's software issues, which have delayed the introduction of key new electric vehicles such as the Q6 E-tron. Audi's Artemis project for an autonomous flagship electric vehicle was also cancelled by VW Group.

On September 1, Audi CEO Markus Duesmann will be replaced by VW Group veteran Gernot Doellner. Doellner will be in charge of addressing Audi's issues, such as slow electrification and a lack of new models.