Audi 5 cars China parts accounted for 85%

After years of development, Audi has been deeply rooted in the Chinese market. Compared with its competitors, Audi's increasing localization rate is an important factor in maintaining its competitive advantage among many luxury brands. FAW-Volkswagen insiders told China Netcom: The localization rate of Audi models in the future will continue to increase, and as high as 85%. At present, Audi has already put into production A4L, A6L, Q5 and Q3 models in China, and the Audi A3, the fifth model, will also be put into operation recently at the Foshan plant.

At present, four Audi models (A4L, A6L, Q5, and Q3) produced by FAW-Volkswagen have localized rates that are relatively high, and internal sources tell Netcom that “there are three domestically produced four models that are now localized. The rate has already exceeded 60%. This figure is expected to continue to increase and it is likely to achieve about 85% in the future."

Among the parts suppliers of FAW-Volkswagen Audi, 180 are purely Chinese-owned enterprises. By integrating Chinese parts supply companies into the Audi parts supply system, Audi's globally uniform quality standards have also enabled Chinese parts and components companies to grow. At present, there are already 60 Chinese-funded enterprises entering the spare parts supplier system of Audi headquarters. In addition, the parts supplied by FAW-VW Audi can also feed back FAW's own brands. These are the significance of greatly increasing the localization rate for Chinese domestic companies.

Since the cooperation between Audi and FAW in 1988, Audi brand cars have gradually been introduced into domestic production. FAW VW has assembled and produced Audi 100, Audi 200, A6, A4, A4L, A6L, Q5 and Q3 models. With the passage of time, the old models have long been discontinued. At present, the Audi models produced by FAW-Volkswagen have four models A4L, A6L, Q5, and Q3 put into production. When Audi Automobile was introduced into domestic production in 1988, it was only produced by means of assembly-by-assembly. With the increase in the number of imported models, Audi's localization rate has gradually increased. However, it can be noted that although Audi is constantly introducing new technologies, the increase in various costs is not reflected in the price of vehicles.

So far, the cumulative sales of Audi models in China have reached 2 million, and 87% of the 2 million sales are domestic cars. It is because of its ability to truly integrate into the Chinese market that the Audi brand has achieved outstanding performance in China that is beyond the reach of its leading competitors. The continuous improvement of the localization rate has also contributed positively to the sales of Audi in China.