Audi has unveiled a new electric vehicle (EV) brand in Chine, targeting younger drivers with a fresh branding approach that omits the company’s signature four-ring logo. The new brand, simply named AUDI, marks a strategic partnership with Chinese automaker SAIC. Together, they aim to reclaim market share in the world’s largest auto market by delivering premium EVs tailored to the preferences of Chinese consumers, reports Reuters.

A Shift in Strategy to Capture the Chinese EV Market

The partnership with SAIC, announced last year, aims to co-develop new EV models, with the first slated for release in the summer of 2025. This new venture is part of a broader move by Volkswagen Group, Audi’s parent company, to strengthen its foothold in China. The decision to forgo the iconic four rings in branding reflects Audi’s effort to appeal directly to a younger demographic, with high-tech, advanced driver-assistance features designed to meet the demands of China’s tech-savvy consumers.

A Bold Bet on Localized Manufacturing and Design

With legacy foreign brands losing traction to local EV and hybrid-focused rivals, Audi’s collaboration with SAIC includes leveraging locally sourced suppliers and technologies. By developing vehicles specifically for the Chinese market, Audi and SAIC can optimize features and designs to better match local preferences, allowing for greater relevance and competitiveness.

“Audi’s new EVs in China will not feature the four-ring logo,” explained Fermin Soneira, CEO of the project, underscoring the company’s commitment to this tailored strategy.

EV Models for the Younger Chinese Audience

The launch event showcased an electric sportback concept car, which will be the first in a series of EVs. Audi aims to attract a much younger audience, with the average age of Chinese premium car buyers at around 30 to 35 years old, compared to the global average of 55. This shift is part of a broader strategy to stay relevant in a market where competitors like Nio et Xpeng have rapidly gained ground.

Audi’s EV sales in China have lagged, with fewer than 15,000 units sold in the first nine months of 2024, trailing significantly behind local brands that are selling ten times that volume. Future plans include launching additional models, such as an SUV, within the next three years.

EVXL’s Take

Audi’s move reflects a growing trend among foreign automakers to localize their products for the Chinese market, where consumer preferences are evolving rapidly. The collaboration with SAIC and the decision to drop the four-ring logo signal Audi’s dedication to adapting to the unique demands of China’s younger, tech-forward consumers. As traditional automakers face fierce competition from local brands like Nio et Xpeng, this strategy may be a necessary step to stay competitive.

For further insights on similar brand strategies in the EV market, check out our recent coverage on Volkswagen’s localized EV efforts et Nio’s expansion in China.

Feel free to leave your thoughts in the comments below.

Photos courtesy of Tycho de Feijter.