Audi FAW New Energy Co., Ltd. delayed approval for the construction of the plant or obtained permission in December.

Audi said that due to delays in approval by the relevant authorities, Audi FAW New Energy vehicle Co., Ltd. plans to co-produce electric vehicles in China later than originally planned, Automobilwoche reported on Nov. 29.

On the same day, a spokesman for Audi said that the construction of the factory would start as soon as possible, but did not give a date for the start and commissioning of the plant. Audi FAW New Energy Automobile is expected to get permission to build a plant in December with the intervention of the German Ministry of economy. The factory was scheduled to start producing cars in 2024.

European Automotive News could not immediately be reached for comment from Germany's economy ministry.

In October 2020, Audi signed a memorandum of understanding with FAW to jointly produce high-end electric vehicles in China, the world's largest car market. FAW owns 40 per cent of the joint venture, while Volkswagen and Audi own 60 per cent.

According to official information, Audi FAW New Energy vehicle project will be based on the PPE platform to develop models. The PPE platform, jointly developed by Audi and Porsche, is a high-end electric vehicle platform that comprehensively absorbs, draws lessons from and even optimizes the components and technical modules of Volkswagen MEB and Porsche J1 architecture. It is understood that Porsche's next generation of Macan pure electric models will be based on the PPE platform.

Audi also plans to produce cars in partnership with SAIC, with the goal of making electric vehicles account for 1/3 of its Chinese car sales by 2025. The importance of the Chinese market to Audi is self-evident, and it can even be said that it is thanks to its excellent performance in the Chinese market that Audi has the capital to compete with Mercedes-Benz and BMW in the global market.

Audi and FAW are long-term partners, and the two companies have been working together to produce internal combustion engine cars in Changchun and Foshan. With the establishment of a joint venture and factory between Audi and FAW, the cooperation between the two sides will be more in-depth, and the electric layout of Audi brand in the domestic market will also be speeded up in an all-round way.