Photo: VCG

German auto giant Audi is seeking to buy a new-energy vehicle (NEV) platform from a Chinese company in order to accelerate its NEV research, according to a report by German newspaper Automobilwoche. Audi said in response that the Chinese auto market is in the midst of the biggest transformation period in history, and Audi will work with all parties to develop a strategy for a successful future.

Industry analysts said Audi's move could upgrade its competitiveness in the fierce Chinese NEV market.

Audi revealed its sales in China reached 136,400 units in the first quarter of 2023, down 16 percent year-on-year. Industry website CarExpert said Audi has fallen behind Mercedes-Benz, BMW and Chinese companies in global NEV competition.

US NEV industry media outlet Electrek said in an analysis published on Tuesday that after multiple development delays due to software issues internally and at parent company Volkswagen Group, Audi is reportedly exploring ways to buy a next-generation EV platform.

The report also noted that the German brand "has a plethora of EV conglomerates to choose from as China is easily the most saturated market for electric vehicle manufacturing."

Audi's NEV research started late, and its technology lags behind that of other mainstream car makers, Zhang Xiang, a research fellow at the Research Center of Automobile Industry Innovation of the North China University of Technology, told the Global Times, noting that Audi must complete the new energy transformation as soon as possible in order to maintain its market position and competitiveness.

"However, NEV research involves high costs in terms of both time and capital investment, which may lead some carmakers to miss business opportunities in the market. Purchasing technology from Chinese companies could be a shortcut for Audi and could reduce its general failure rate," said Zhang.

Zhang pointed out that technology authorization between automakers is common. China's auto industry also bought foreign technology in its early development stage.

In 1988, China's FAW signed a contract for technology transfer with Audi, which was the first technology transfer contract for high-end cars in Chinese history.

Thirty-five years later, Audi has turned from seller to buyer. "If Audi reaches cooperation with a Chinese company, it would mark China's first auto-related technology export," said Zhang.

He noted that Chinese auto companies operating overseas usually register patents to secure their core technology in both domestic and overseas markets, in line with the common practice of international enterprises.

Global Times