By Dominic Chopping


Audi and Chinese partner SAIC deepened their cooperation with a new strategic partnership as the carmakers move to develop new vehicles under a jointly-owned brand.

Audi and SAIC Motor have created AUDI, a China-exclusive brand that launched its first vehicle last year and has plans to debut a new SUV this year before a third model launch next year.

The companies said Friday that under the expanded deal they would establish a new innovation and technology center in Shanghai to focus on the development of China-specific, intelligent electrification technologies, including AI-powered cabins and advanced driver-assistance systems.

The companies are also developing a next-generation platform for future vehicles, which they plan to use as a base for four all-new AUDI models in the coming years, they said.

Audi--which is part of the Volkswagen Group--is among several European automakers that are developing models specifically for China, where the market is seeing intense competition from domestic manufacturers and where consumers opt for more tech-heavy features and different styling options in vehicles.

Volkswagen Group has partnerships with various Chinese manufacturers, including SAIC, FAW and XPeng, as part of its China strategy that aims to accelerate development of country-specific vehicles.

Mercedes-Benz is expanding research-and-development capabilities in the country to boost development of vehicles tailored to Chinese buyers while BMW also focuses on in-country R&D and production to compete with domestic rivals.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

04-17-26 0925ET