The companies have signed a Memorandum of Understanding that defines the framework for the joint production of EVs targeting the premium market.
While the plans for the new company are still being developed, the production is scheduled to start in 2024.
Markus Duesmann, Chairman of the Board of Management of AUDI AG, commented: “This decision emphasises the strategic importance of the Chinese market. We are thus actively pushing forward with innovations locally.”
By 2025, Audi plans to generate approximately one-third of its unit sales in China with EVs.
The German manufacturer delivered 512,081 vehicles to customers in China from January to September this year, which is 4.5% more than in the same period of the previous year.