Audi FAW NEV, the joint venture between Audi and China FAW Group, has officially started production at its plant in Changchun, Jilin, marking a significant milestone in Audi’s transition towards electrification in China. The production site will focus exclusively on producing purely electric models, starting with the Audi Q6L e-tron series, followed by the Audi A6 e-tron for the Chinese market.
With a planned annual capacity of over 150,000 units, the plant is Audi’s first in China dedicated to manufacturing electric vehicles. In a strategic move, about 50 percent of the suppliers will be located within a 30-kilometer radius of the new production site, enhancing efficiency and reducing logistical challenges for the joint venture.
Furthermore, the local government has designated an exclusive industrial park for the joint venture, with the aim of sourcing 90 percent of suppliers domestically. This aligns with Audi FAW NEV’s commitment to promoting local production and supporting China’s growing electric vehicle ecosystem.
The collaboration between Audi and China FAW dates back to October 2020 when they signed a memorandum of understanding to co-produce premium electric vehicles in China. Subsequently, in January 2021, FAW, Audi, and the Changchun city government formalized an agreement to establish the joint venture in the northeastern Chinese city.
Audi FAW NEV was officially founded on March 25, 2021, with Audi holding a 55 percent stake, Volkswagen China with 5 percent, and China FAW with 40 percent. The joint venture plans to develop models based on the Premium Platform Electric (PPE) platform, drawing on components and technology modules from the Volkswagen MEB and Porsche J1 architectures.
The total investment in the plant is expected to exceed RMB 30 billion yuan ($4.1 billion), with the first model slated for production in 2024. Audi FAW NEV will invest RMB 15.8 billion in the initial phase, focusing on building plants and supporting facilities to achieve an annual production capacity of 150,000 electric vehicles.
Overall, the production commencement at Audi FAW NEV’s plant signals a significant step forward in Audi’s electrification journey in China, solidifying its commitment to sustainable mobility and contributing to the country’s ambitious goals for a greener automotive industry.
