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Economic Watch: German, Chinese automakers forge deeper ties to seize new energy vehicle opportunities

Source: Xinhua

Editor: huaxia

2026-04-30 16:40:15

BEIJING, April 30 (Xinhua) -- At the ongoing 2026 Beijing International Automotive Exhibition, German automotive giants Audi, BMW, and Mercedes-Benz, joining forces with their Chinese partners like FAW Group and SAIC Motor, unveiled a slew of new electrified products, technologies, and experiences, signaling a concerted push to capture the immense opportunities in the booming new energy vehicle (NEV) sector.

Audi's display stands as a prime example of this accelerated transition to electric vehicles. Beyond the launch of the mid-to-large-sized coupe SUV SQ8, the spotlight is firmly on its electric lineup, including the newly launched luxury all-electric sedan A6L e-tron and the upgraded Q6L e-tron family. These models are central to Audi's electrification strategy in China.

Significantly, both the A6L e-tron and Q6L e-tron roll off the production lines at Audi FAW NEV Co., Ltd., in Changchun, northeast China. This joint venture, established in 2021 with an investment exceeding 30 billion yuan (about 4.37 billion U.S. dollars) and involving Audi, FAW, and Volkswagen Group China, is Audi's first dedicated pure electric vehicle production base in China. Spanning 1.54 million square meters with a planned annual capacity of 150,000 units, the facility is a "super smart eco-factory."

It features a 9,100-tonne intelligent stamping line, over 800 smart robots for high-precision welding, and extensive automation in final assembly. The A6L e-tron, the second strategic model produced here following the Q6L e-tron, is poised to bolster the German premium brand's competitiveness in the Chinese market.

Audi is also deepening its collaboration with Chinese tech leaders. The A6L e-tron, among other models, is equipped with Huawei's intelligent driving technology.

"Audi is the epitome of luxury cars, and Huawei is a technology leader. Our long-term cooperation is driving the intelligent upgrade of luxury vehicles," said Li Wenguang, president of Huawei's intelligent driving solution product line.

Strengthening its local footprint, Audi recently inked a strategic cooperation agreement with another key partner, SAIC Motor. The pact focuses on the full value chain layout for future Audi-branded vehicles, with core emphasis on vehicle R&D. A key outcome will be the establishment of an Audi innovation center in Shanghai.

Led by Audi, this center will concentrate on smart electrification technology and the full-value-chain development of intelligent connected vehicles (ICVs). The partnership aims to jointly develop four new Audi models, expanding and complementing the brand's existing portfolio in China.

Other German automakers are also fast-tracking collaborations with their Chinese partners. Volkswagen, for instance, has unveiled nine models in just two months, with four more slated for this year. By 2029, Volkswagen's electrified portfolio in China is set to expand to over 30 models, its largest NEV lineup yet, covering BEV, PHEV, and EREV powertrains.

Together with joint ventures and excellent local partners, the company is integrating German engineering with local innovation at true "China speed," said Robert Cisek, executive vice president of Volkswagen Group China and CEO of Volkswagen Passenger Cars Brand for China, at the Beijing auto show.

BMW is also advancing its local production and technological capabilities. Its Shenyang production base, a vital part of BMW Group's global network, is actively integrating AI and robotics into its manufacturing systems.

This intensified cooperation unfolds against the backdrop of China's dynamic NEV market. Data from the China Association of Automobile Manufacturers show that in 2025, China's automobile exports exceeded 7 million units, with NEV exports reaching 2.615 million units. From January to March this year, NEV production and sales approached 2.965 million units and 2.96 million units, respectively, with NEVs accounting for 42 percent of total new car sales.

To seize these opportunities, Sino-German automakers are also accelerating their overseas market strategies. FAW Group, for example, is working with Volkswagen Group and Audi to define export strategies for the three brands of their joint venture.

"Shareholders from both sides will continue to deepen cooperation, jointly address the automotive industry transformation and market competition, and drive the joint venture's transition toward intelligence and electrification," said Liu Yigong, general manager of China FAW Group Co., Ltd.

Industry observers note that automotive cooperation serves as a model and benchmark for Sino-German economic collaboration. By leveraging their respective strengths in engineering, manufacturing, digitalization, and market understanding, companies from both nations are well-positioned to lead the NEV revolution, ultimately offering global consumers a wider array of high-quality mobility products and experience.

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