VW Group together with its Chinese joint venture partner SAIC Motor to invest of 4.13 billion yuan (590 million dollars) in the preparation of their production capacity in Shanghai to release a new model Audi A7L with a long wheelbase.
Currently, the joint venture of SAIC Volkswagen only sells cars under the Volkswagen and Skoda. Modernization of its Shanghai plants should lead to an annual production capacity of 60,000 units Audi A7L and 60,000 new Volkswagen crossovers. Maximum plant capacity will remain unchanged. It is expected that the reconstruction will be completed by the end of this year as demand for luxury cars in China remains high despite the decline in sales in the last two years.
Meanwhile, Audi China said that its project with SAIC goes according to plan, without specifying that it was for the project. In the first half of 2020 sales of SP decreased by 37% year on year to 577 385 units, and total sales in industry fell by 17% due coronavirus pandemic and its impact on China’s auto industry. Last year the joint venture has sold at least 2 million cars.
As to when the pipeline will descend the first instance A7L, Chairman of SAIC Chen Hong has already clarified that the joint venture VW plans to release its first product Audi at the beginning of 2022. In addition, Audi has also entered into a longterm agreement with FAW Group in China to build all their cars in the cities of Changchun and Foshan.