Credit：Audi

Audi is in talks with several Chinese original equipment manufacturers, or OEMs, about acquisition of EV platform technology to reduce development time, Automobilwoche cited source at Audi earlier this month. The German publication said Oliver Blume, CEO of Audi parent Volkswagen Group, has approved Audi’s strategy to seek EV technology overseas. While it didn’t specify Chinese candidates that Audi considered, the news soon triggered speculations of Audi’s possible dealing with multiple automakers such as BYD, Geely, Nio, since China is an established market for EV manufacturing nowadays.

Audi is talking with Chinese EV startup IM Motors to acquire an electric platform, and the talks are at an advanced stage, Reuters then quoted people familiar with the matter. Audi discussed to IM Motors for takeover of the EV architecture ranging from the battery, the motor control, the electronic control, to the undercarriage and the smart driving system, Chinese digital newspaper The Paper learned.

Founded in December, 2020, IM Motors is a Shanghai-based premium EV brand backed by China’s largest carmaker SAIC Motor and two Chinese technology companies—Zhangjiang Hi-Tech Group and Alibaba Group. It started delivery of its first model L7 in June, 2022. Two months later, the venture received new funding from investors including SAIC with the valuation of nearly RMB30 billion. 

In response to the news, Audi China later said Audi would like to work with all parties to formulate strategies as Chinese auto market is experiencing the biggest ever revolution in history. SAIC doesn’t have any major information that would have disclosed at the moment, and if there is any important progress that is subject to disclosure requirements for listed companies, SAIC will fulfill its information disclosure obligations in accordance with relevant regulations, person at the company told the state news agency China News Service. Following verification inside company, BYD found it didn’t have any involvement with Audi’s reported move, the leading EV maker responded. Geely and IM Motors said they were not aware about the news.

Audi didn’t directly confirm the news. If the reported attempt for EV technology were accurate, it would be the first time for a foreign auto brand to buy auto technology from Chinese rivals, marking a historic turning point for China’s auto industry since homegrown automakers tended to purchase technology from overseas or develop technology with overseas partners in the past three decades.

The pursuit of EV technology, if confirmed true, is unsurprising for Audi as the market share of the German brand has been eroded by emerging EV companies like Tesla and BYD. The price war ignited by Tesla has driven traditional brands of gas-powered cars into corner.

Audi didn’t have its own platform to produce EVs yet. The Scalable Systems Platform (SSP) platform that it plans to use was originally scheduled to debut in 2026, but was delayed to 2029 due to software issues. Volkswagen Group CEO Oliver Blume admitted in June about Audi’s laggard, particularly in EV sector, and blamed it for software. He noted Audi’s lineup in China isn’t competitive, which the entire group is highly dependent on. “The battery electric vehicle lineup in particular is not competitive in comparison with this market,” the executive said. He stressed Audi will focus on full-electric vehicle and vowed to revive the luxury brand.

Audi posted sales of 136,400 vehicles in China in the first quarter of the year, declining 15.6% from a year earlier, while its longtime rivals Mercedes-Benz and BMW each sold about 200,000 units in the market. Audi delivered 34,600 EVs worldwide in the quarter, and Mercedes-Benz and BMW had global deliveries of 51,600 units and 64,600 units, respectively. It’s hard to imagine Audi waiting for the SSP and decelerating its catch-up in the face of increasing competition amid sweeping electric wave. 

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