Audi in Talks to Acquire Chinese EV maker SAIC Motor Corp

Audi is in talks with SAIC Motor Corp to purchase an electric vehicle platform from the Chinese state-owned automaker, according to two people familiar with the matter, in an unprecedented attempt to increase market share. The move, which comes as sales of Audi's EV products lag far behind those of Tesla and domestic competitors such as Nio, highlights the pressure on all legacy and Western brands competing for EVs in the world's largest auto market.

According to sources who requested anonymity because the matter is private, Volkswagen AG's premium car brand wants to take over the EV platform owned by SAIC's EV unit, IM Motors. One of them added that talks have progressed.

IM Motors, a premium EV brand controlled by SAIC and with investors including e-commerce giant Alibaba Group, began deliveries of its first model, the L7 sedan, in June 2022.

Sources were unable to confirm the price Audi has offered for the EV platform or whether SAIC will continue to manufacture the L7 sedan following the deal.

On Tuesday, Chinese media outlet Mingjing Pro reported Audi's potential takeover of the platform. Earlier, Automobilwoche reported that Audi was in talks with several manufacturers to acquire an EV platform, but did not name them.