Audi Splits China Operations North-South to End Internal Rivalry

Since SAIC Motor and Audi launched their joint venture cooperation in 2016, Audi has established a "North-South" structure in the Chinese market, comprising FAW Audi and SAIC Audi. For years, overlapping operations and competition for resources between the two joint ventures have posed internal challenges to Audi's development in China. Recently, Audi has clearly delineated the business responsibilities of its northern and southern operations, aiming to clarify their respective market positioning and product portfolios. This realignment is seen as formal recognition of the existing market structure, with both parties adopting a collaborative approach to facilitate a smooth transition—seeking to end prolonged internal friction and achieve more efficient localized operations.