Audi’s path to electrification transformation still faces numerous challenges.
On August 25th, Chinese media AutoPix reported that Wang Kaiyu, Deputy General Manager and Management Committee Member of Audi FAW NEV, recently departed from her position and is highly likely to be reassigned within the FAW-Volkswagen system.
Wang Kaiyu, who had worked within the FAW system for many years, previously oversaw the FAW-Volkswagen Foshan branch for several consecutive years. She participated in numerous major projects at the Changchun and Foshan plants, accumulating extensive experience in production and manufacturing management.
During her nearly two-year tenure at Audi FAW, Wang Kaiyu was primarily responsible for production and logistics. Coinciding with this period, Audi FAW’s core focus was the localized production of the Audi PPE platform, initially introducing three new energy vehicle models for domestic production.
Following Wang Kaiyu’s departure, Audi FAW has not yet announced a successor.
As supplementary information, the PPE (Premium Platform Electric) platform is a high-end electric vehicle platform jointly developed by Audi and Porsche. It can be applied to both high-floor and low-floor vehicle models, covering Audi’s various segments from mid-to-high-end to luxury electric vehicles. It serves as the foundation for the Volkswagen Group’s rollout of premium mid-to-large-size electric vehicles during its electrification transition.
The PPE platform carries high expectations but also faces multiple challenges. Firstly, many components have not yet been localized for domestic production in China, necessitating a high proportion of imported parts in the initial stages. Secondly, a significant portion of the project managers and engineers involved in the construction and debugging of the domestic PPE plant are from overseas, which to some extent increases the difficulty of team management and integration.
Currently, the first PPE model, the FAW Audi Q6L e-tron and Q6L Sportback e-tron, was launched in August. The next two products under the PPE plan—the A6L e-tron and the yet-to-be-officially-unveiled Project E6—have entered the pre-mass production stage and are expected to begin formal mass production soon.
While challenges on the production side remain unresolved, pressure on the sales end of the PPE platform is also increasing. A relevant responsible person from FAW-Audi revealed that the initial sales of the two Q6L e-tron models in Shanghai have been disappointing.
According to AutoPix, Audi FAW is continuously advancing the localization of key components, but this effort will not be completed until next year. The window for FAW-Audi to expand market discounts for PPE new models will likely have to wait until next year.
On the sales system front, FAW-Audi is trialing a “hybrid direct sales” model for the Q6L e-tron family and the A5L. Under this model, consumers purchase cars directly from FAW-Audi’s official channels, while dealers are only responsible for providing services, including agent sales and delivery.
The advantage of this approach is that car prices become more transparent and services more standardized. However, this strategy requires building strong mid-platform capabilities, digital capabilities, and more, which may impact sales in the short term.
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