Audi will set up its $3.3 billion EV joint venture plant with FAW in China.
The two automakers will start constructing their joint venture auto plant in China’s Jilin province in April.
In October 2020, Audi and FAW signed a memorandum of understanding to produce vehicles in China jointly.
Then in November, Audi noted the plant was experiencing a delay in approval by Chinese authorities.
The two companies will invest $3.29 billion into the facility, which will start vehicle production in 2024. According to Reuters, the plant will have a capacity of 150,000 EVs every year.
We are not sure precisely what vehicles the plant will produce, but we know one of them will be the Audi e-Tron SUV.
We know that Audi and FAW’s primary focus will be to sell into the Chinese market. However, they may also export, especially in the Asian region.
The FAW deal is not the only one in the works for Audi. The German automaker is also planning to produce electrified vehicles with Shanghai-based SAIC motors.
Audi’s entry into the Chinese market is a calculated one. Not only is the company investing in joint ventures and local productions, but the company is looking to grab a larger market share in one of the top markets for EV sales.