Audi Pursues SAIC as Second Partner in China

Volkswagen Group has agreed with SAIC Motor Corp. to explore a possible joint venture to make Audi luxury vehicles in China.

The two companies already assemble Skoda- and VW-brand vehicles for the Chinese market. And VW currently produces some Audi models in the country through its partnership with China FAW Group Corp.

SAIC says the new venture would make hybrid and electric vehicles as well as conventional Audi models at an existing SAIC-VW facility. The partners also envision importing certain Audi models.

Audi, a favorite marque among Chinese government officials, is China’s best-selling luxury brand. But growth eased last year after a Communist Party crackdown on conspicuous consumption. Audi sales in China this year have grown 6% compared with 10% for BMW and 29% for Mercedes-Benz.