The purpose of SAIC and Audi's marriage should be more creative

The news that SAIC and Audi will establish a joint venture is undoubtedly the biggest news and the biggest focus in the industry. However, judging from the relevant comments in the industry, everyone seems to be inclined to believe that the reason why Audi wants to form a joint venture with SAIC is to reverse the so-called unfair treatment problem of large contributions but small benefits presented by the joint venture with FAW, and to seek greater benefits from the joint venture with China. But in my opinion, Audi's choice to establish a new joint venture with SAIC is by no means just for the above purpose, and we need to open our minds a little wider.

From a strategic perspective, Audi's attempt to establish a new joint venture with SAIC is obviously based on the belief that the future Chinese luxury car market holds huge market prospects and Audi needs to seize this opportunity.

The industry generally believes that the joint venture between Audi and SAIC will produce models such as Audi A5 and Q2 with relatively niche and sporty positioning in the future, but some industry insiders believe that such relatively niche models alone will not be able to support the new joint venture between Audi and SAIC in the future? Some industry insiders even believe that the new joint venture between Audi and SAIC will share products with FAW-Volkswagen Audi, that is, the same product will be produced and sold by both FAW-Volkswagen Audi and the new joint venture between Audi and SAIC.

In my opinion, it is basically impossible for the two joint ventures to share products in the future. Imagine if this is true, Audi will have to deal with various conflicts of interest between the two joint ventures in the future. This is tantamount to asking for trouble, and Audi will definitely not do it. At the same time, the so-called niche models that Audi and SAIC will put into production after the joint venture may not be niche in the future Chinese auto market. After all, the Chinese auto market is large enough, and any so-called niche market segment may be a large market in absolute terms.

Let's first review Audi's nearly 30 years of development in the Chinese auto market. Audi has pioneered many firsts in the field of luxury cars in China. It was the first time that Chinese people knew and experienced what a luxury brand is, the first time that Chinese people bought and used domestic luxury brands, and the first time that a car brand became a representative of official cars. It was these firsts that made Audi famous and profitable in the Chinese luxury car market and even the global luxury car market in the past 30 years. Audi's attempt to establish a new joint venture with SAIC may mean that Audi is planning for the next 30 years in the Chinese auto market. Therefore, it may be the most correct perspective to examine Audi's attempt to cooperate with SAIC from this perspective.

If we look at Audi's development in the next 30 years in the Chinese auto market, perhaps Audi will make big moves in the Chinese auto market in the future. I would also like to open my mind and share with you some of my wild ideas about Audi's future product planning in the Chinese auto market, especially the possible product launch of its new joint venture with SAIC.

In the past 30 years, Audi has taken the lead in domestically producing luxury cars in the Chinese auto market, including Audi A6, Audi A4, Audi A3, Audi Q5 and Audi Q3, etc. However, with the intensified competition in the Chinese auto market, the upgrading of consumption capacity in the Chinese auto market and the more obvious trend of younger consumers, Audi will undoubtedly introduce more models to China for production in the next 30 years.

In general, the trend of younger people in the Chinese auto market will undoubtedly lead Audi to introduce models that are relatively personalized, fashionable and sporty. Therefore, the industry generally believes that the new joint venture between Audi and SAIC will introduce models such as Audi A5, Audi A7 and Audi Q2 in the future. I also agree with this view. In the future, Audi will even introduce more such models to the two joint ventures in China, such as the sports models of the Audi S series.

At the same time, the upgrading of consumption capacity in the Chinese auto market should also allow Audi and even the Volkswagen Group to introduce higher-end models. Therefore, I guess that in the future, models such as Audi A8 and Audi Q7 may be introduced into China, and even models under the Porsche brand of the Volkswagen Group may be introduced into China one after another. After Audi and SAIC established a joint venture, if the whole vehicle production plant is considered on a large scale, it will definitely be settled in the Yangtze River Delta region, which is also the most developed economy and the highest consumption capacity region in China. Therefore, if Audi and even the Volkswagen Group want to introduce high-end models and luxury brand models to China in the future, considering the main target consumption areas, there will also be a comprehensive comparative advantage in terms of cost.

From the perspective of the current competitive situation, whether it is Mercedes-Benz and BMW, which are in direct competition with Audi, or many second-tier luxury brands, the pace of introducing domestic models into the Chinese auto market has accelerated. Therefore, as the most appealing and historical brand in the Chinese auto market, Audi obviously does not want to fall behind in this competition, and seeks to create several more firsts in the Chinese auto market in the next 30 years. Perhaps this is a reflection of Audi's deeper understanding and grasp of the Chinese auto market compared to its competitors.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.