Audi and MG/LDV parent company SAIC are doubling down on the confusingly named China-only brand AUDI Brand.
Late last week, the two companies announced that they would build an innovation and technology center for the AUDI brand in Shanghai.
According to Audi and SAIC, the center will focus on “China-specific intelligent electrification technologies and whole vehicle development” as well as “AI-powered immersive intelligent cabins and advanced driver assistance systems” for the Chinese market.
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They also confirmed that the next-generation Advanced Digitized Platform (ADP) will serve as the basis for four new AUDI models launching in China in the “coming years,” although the exact timing has not yet been confirmed.
The AUDI brand was founded in 2024 to capitalize on the Chinese market’s penchant for electric vehicles (EVs) with tech-heavy spec sheets and screen-studded interiors. Development times would be shortened by leveraging existing SAIC platforms and technologies.
The new China-specific brand would further differentiate itself from its European sibling through a different design language, foregoing Audi’s iconic four interlocking rings and single-frame protective grille.
When AUDI’s first model, the E5 Sportback, was launched in September 2025, the situation seemed promising: the brand recorded 10,000 orders in the first 30 minutes after order books opened. However, not all of these orders resulted in sales Car news China Only 7070 were reportedly sold as of the end of January 2026.
To address slow sales, the model was temporarily reduced in price by ¥30,000 (A$6,100). Buyers could also opt for a five-year loan with a zero percent interest rate.
The all-electric E5 is based on the current version of the ADP developed by SAIC. It has a 572kW dual-motor all-wheel drive system that can complete the 0-100km/h sprint in 3.6 seconds, and a 100kWh battery is standard.
This powertrain, and indeed the Advanced Digitized Platform, is available in Australia on the range-topping MG IM5 Liftback.
ADP will also serve as the basis for the E7X SUV, which will debut at the Beijing auto show this week. The E7X is expected to be available as both an electric vehicle and an extended-range electric vehicle (EREV). In 2027, the AUDI brand will bring a third model onto the market.
As we have documented, China has gone from being the golden goose to Volkswagen Group’s problem child thanks to the rapid adoption of electric powertrains and the rise of local brands.
Volkswagen lost its title as the country’s top-selling brand to BYD in 2023. Sales in China peaked in 2019 when the German automaker sold 4.23 million vehicles. In 2025, Volkswagen Group sold just 2.69 million cars in China, a decline of 8.0 percent from 2024 and 36.4 percent or 1.54 million units fewer than the company’s peak.
The first victim of the automaker’s crash is Skoda, which announced last month that it would withdraw from the Chinese market by mid-2026. The Czech brand’s sales fell from 341,000 in 2018 to just 15,000 last year.
In addition to developing AUDI in collaboration with SAIC, the Volkswagen brand has also partnered with Xpeng to help them develop a range of China-specific EV models.
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