"Audi DNA with China Innovation" - The AUDI E Concept

Audi is partnering with Chinese carmaker SAIC. And together, they are creating a sister-brand for the Chinese market called… AUDI. Yeah that’s right. The new brand is called AUDI (in caps lock). And it ditches the iconic Audi 4-ring emblem for a lettered A-U-D-I logo. AUDI will be EV only, and will be exclusive to the Chinese market, as least for now. This is the AUDI E concept pictured. Stats are: ~760hp with a ~420 mile range, and 800-volt architecture that allows very fast/efficient charging. But why is this significant to North America?

If you can’t beat ‘em, join ‘em…

In our opinion, this signals a potential tipping-point for the automotive industry. Where the most revered, most pedigreed, & most mechanically-innovative European car brands… are now conceding to the Chinese brands to retain relevance in the Chinese market. See, China is the largest car market in the world by a wide margin. The US is the #2 market… at only half the size of China. Historically, Chinese-market buyers held European car brands in high regard/prestige. But with the transition to electrification, Chinese automakers played their cards strategically & capitalized on their tech/software/battery advantages. As a result, European car sales in China have slumped, and within China, domestic car brands are catapulting into relevance & fashion. In other words, legacy carmakers have lost significant marketshare in the largest car market in the world… quickly. And they’re scrambling.

This may prove to be a good union for Audi…

It very well may attract young, affluent, tech-savvy buyers within the Chinese market. But longterm, and globally, the verdict is out. When software replaces mechanics, it levels the playing field. You lose the mechanical nuances (aka the heart & soul) of the car-brand that historically made it distinctive & special. And when that’s lost, the product becomes superficial. Authenticity fades. And without authenticity, you end up with executive smiling around Chinese-built EVs that say AUDI in all-caps. Audi claims this is “Audi DNA with China innovation”. Imagine how difficult it must be for Audi to say that enthusiastically. In conclusion, it’s worth pointing back to our previous prediction that China will eventually take a controlling stake in the Volkswagen Audi Group.