Audi is facing a crucial challenge in China, the world’s largest automotive market. To respond to the changing demands of consumers, the German brand has decided to take a strategic turn: launching a new electric sub-brand that dispenses with its iconic four-ring logo. This bold initiative, the result of the partnership with Chinese manufacturer SAIC, seeks to attract a younger audience and align with the prevailing technological preferences.
Audi is preparing for a new chapter in China, a market that not only receives innovations, but also demands them. In a bold move, the German brand has introduced “AUDI,” a new electric vehicle sub-brand that stands out by shedding the iconic four-ring logo of its traditional brand. This concept, designed exclusively for the Chinese market, marks a decisive bet on electric technology and intelligent connectivity, capturing Audi’s DNA while adopting China’s demands and trends.
According to Audi CEO Gernot Döllner, this strategic change is due to the fact that “the industry is going through the greatest transformation in its history, and with our alliances in China, we are playing a decisive role in this evolution.” Indeed, the profile of the premium consumer in China has changed drastically, being much younger and with an evident predilection for technology, especially electric vehicles. These users expect more than just a simple automobile; they seek a connected, intuitive, and surprising experience that speaks to them in their own language.
For Audi, this means adapting its design and technology standards to meet the demand for automated driving and unprecedented connectivity. This strategy materializes in the alliance with SAIC, which becomes a gateway to the expansion of Audi’s electric vehicle range in the world’s largest market. Together, the brands will create vehicles that combine comfort and sophistication with Audi’s unmistakable DNA.
Audi’s decision to remove its famous four-ring logo from the new “Purple” series reflects a strategic adjustment in response to the growing competition and the evolution of the electric vehicle market in China. As Reuters reveals, “the new electric vehicle brand in China whose cars will sport just the name AUDI and not its signature four-ring logo, a move aimed at attracting younger customers in the world’s largest auto market.”
Despite the prestige associated with internal combustion engines, the rise of electric vehicles has led to a redefinition of the priorities of the Chinese consumer, who now values innovation and price more than loyalty to a specific brand. During the first half of 2024, Audi sold less than 10,000 electric vehicles in China, a figure that contrasts notably with the results of Chinese brands like Nio and Zeekr.
This situation has prompted Audi and its partner SAIC to reconsider their approach and adapt their strategies to maintain their relevance in this competitive market. As Reuters points out, “Developing cars specifically for China allows foreign automakers to better target a huge customer pool.” In this sense, Audi’s new “Purple” project, in collaboration with SAIC, is designed to be more compatible with local preferences.
The “Purple” series will feature a CATL battery, an advanced driver assistance system (ADAS) developed by the Chinese startup Momenta, and the electric architecture of IM Motors, SAIC’s electric vehicle brand. With the first concept car to be presented in November 2024 and the intention to launch nine models by 2030, Audi is seeking to strengthen its presence in the world’s largest electric vehicle market.
The decision to remove the iconic four-ring logo underlines Audi’s effort to renew itself and consolidate its position in a rapidly changing market. As CEO Fermin Soneira told Reuters:
“The customers (here) are much younger than the rest of the world, 30 and 35 (years old) on average in the premium segment, while the rest of the world is 55,” he said.
Audi’s bold strategy demonstrates its commitment to adapting to the demands of the Chinese consumer and dominating the electric vehicle market, a key transition in the transformation of the automotive industry. By shedding its iconic logo and partnering with a local manufacturer, the German brand seeks to attract a younger audience and align with the prevailing technological preferences. In an increasingly competitive environment, Audi and SAIC have joined forces to regain ground and consolidate their presence in the world’s largest automotive economy.
In short, Audi’s move to launch an electric sub-brand without its four-ring emblem reflects a strategy of renewal and adaptation to the Chinese market. Beyond a simple image update, this decision marks an effort to capture the attention of young consumers, who value innovation and technology over brand loyalty. In an increasingly competitive environment, Audi is seeking to consolidate its position in China’s lucrative electric vehicle market, demonstrating its adaptability and commitment to meeting the demands of the local consumer.
