Visitors view Audi vehicles on display at the 29th Chengdu International Motor Show at the Western China International Expo City in Chengdu, Southwest China's Sichuan Province, on August 21, 2026. Photo: VCG

German carmaker Audi and China's SAIC Motor on Thursday launched a new research and development (R&D) joint venture in Shanghai, deepening Audi's development capability in the Chinese market. 

The new entity, the AUDI Innovation & Technology Center, will serve as a dedicated R&D base for Audi's China-focused AUDI brand, with end-to-end vehicle development capabilities and a team of around 300 people, according to a statement released by SAIC. 

Its work will cover intelligent electric-vehicle technologies, vehicle dynamics, AI-powered cockpits, and next-generation advanced driver-assistance systems.

The two companies will jointly develop four new AUDI models based on the next-generation Advanced Digitized Platform (ADP) 2.0, with the first scheduled for launch in 2028. Audi first announced the center in April as part of a broader cooperation covering the value chain for future AUDI models, including research and development, according to an Audi statement.

The China-exclusive AUDI brand was launched in 2024. Its first production model, the E5 Sportback, went on sale in 2025, followed by the E7X this year, while a third model is scheduled for 2027. The four vehicles to be developed through the new center will expand that lineup.

The move marks a further step in Audi's localization strategy in China. SAIC said that the joint venture will combine Audi's engineering capabilities with SAIC's local development expertise to support the development of intelligent vehicles for the Chinese market.

SAIC Vice President and Chief Engineer Zu Sijie described the center as a new milestone in the two companies' deepening strategic partnership. Audi China President Dr. Johannes Roscheck said it underscored Audi's long-term commitment to China, adding that the company would continue to strengthen its local R&D capabilities.

The Shanghai center also reflects a broader shift among foreign automakers in China, with localization increasingly moving beyond manufacturing into vehicle development, software and intelligent-driving technologies, industry analysts said.

A 2026 survey by the German Chamber of Commerce in China found that the share of German automotive companies conducting R&D in China for both the Chinese and global markets had nearly tripled in two years, from 12 percent to 33 percent. It also found that 81 percent of automotive respondents said localizing R&D in China had accelerated development compared with Germany.

Audi offers a concrete example of that shift. The E5 Sportback was developed in just 18 months using technology provided by SAIC, including batteries, electric powertrains, infotainment software and advanced driver-assistance systems, according to media reports.

The pace of deeper localization is continuing even as foreign brands face intensifying competition in China. SAIC and General Motors in August renewed their joint venture through 2047, while GAC and Honda extended partnership through 2038 and SAIC and Volkswagen renewed theirs through 2040. BMW has announced an additional 20 billion yuan ($2.76 billion) investment in China, while Volkswagen is building what it calls its largest R&D center outside Germany in Hefei, East China's Anhui Province. 


Global Times