Audi CEO Unveils Plan to Accelerate New EV Model Development in China

Audi's CEO, Markus Duesmann, recently spoke about the company's plans to expedite the development of new electric vehicle (EV) models to meet the increasing demand, especially in China.

In an interview with Reuters, Duesmann acknowledged the need for faster production cycles in connectivity and software, indicating the company's commitment to reviewing its entire development process.

Audi's Strategy to Meet Surging Demand for EVs in China

Audi aims to reduce the current development time from around 48 to approximately 30 months.

The Volkswagen subsidiary has been trailing behind its German counterparts, BMW and Mercedes-Benz, in transitioning toward battery-electric vehicles (BEVs).

Duesmann highlighted the importance of adapting quickly to market changes and stated that by 2030, the BEV share of the premium car market should range between 60% and 70%, depending on the region.

Recognizing the potential for an even earlier shift in China, Audi aims to address the shortfall in its sales performance by focusing on developing vehicles that better cater to Chinese consumer needs.

Audi's EV Plans, Challenges

Audi's electric vehicle lineup in China expanded in 2022 by introducing two SUVs, the compact Audi Q4 e-tron and the mid-sized Audi Q5 e-tron, both based on the modular electric drive system (MEB).

Additionally, the imported Audi e-tron GT quattro joined the lineup. However, the company's ambitions extend beyond these initial models.

Audi plans to strengthen its research and development capabilities in China by opening a new R&D Building in Beijing.

This state-of-the-art facility will focus on developing China-specific vehicles, innovative technologies, and advanced driver assistance systems.

The next phase of Audi's EV roadmap in China involves the production of three new localized models based on the upcoming Premium Platform Electric (PPE).

Starting in late 2024, Audi intends to produce versions of the Audi Q6 e-tron and the Audi A6 e-tron tailored specifically for the Chinese market.

The production will occur at Audi FAW NEV Company's Changchun factory, a joint venture with Audi's long-term partner, FAW.

This venture represents a substantial investment of approximately 2.6 billion euros, to create around 3,000 new jobs in Changchun.

Strengthening Audi's Business in North America

While Audi focuses on enhancing its presence in China's rapidly growing EV market, the company also seeks to strengthen its business in North America.

Markus Duesmann stated that Audi sees potential in tapping into the strong U.S. car market and leveraging Washington's generous subsidies program.

The recently reinforced strategy aligns with the Inflation Reduction Act, providing additional support for Audi's plans.

To bolster its production capacity in the region, Audi is considering expanding its existing plant in Mexico or potentially utilizing Volkswagen's site in Tennessee.

Duesmann expects a decision to be made regarding this expansion within the current year, which would further contribute to Audi's efforts to meet the demand for EVs in North America.

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