Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Audi in talks to acquire SAIC's EV platform

Published 07/12/2023, 09:58 AM
Updated 07/12/2023, 09:58 AM
© Reuters.  Audi in talks to acquire SAIC's EV platform

According to reports by Reuters Wednesday, citing “people familiar with the matter,” Germany's Audi is in talks with SAIC Motor Corp (SS:600104) to purchase an electric vehicle platform.

The decision highlights the intense competition in the world's largest auto market as legacy and Western brands grapple with the rising demand for EVs. With Audi's EV sales significantly lagging behind Tesla and domestic competitors like Nio (NYSE:NIO), the company's move underscores the mounting pressure on these brands.

The unnamed sources indicated that Audi is currently in advanced talks to acquire the EV platform owned by SAIC's EV unit, IM Motors. The potential takeover was reported Tuesday by Chinese media outlet Mingjing Pro.

Previously, Automobilwoche had mentioned Audi's discussions with multiple manufacturers regarding the acquisition of an EV platform, without specifying the parties involved. This would mark Audi's first instance of purchasing a platform from another manufacturer, as the company has predominantly utilized Volkswagen's (ETR:VOWG_p) EV-dedicated MEB platform for its offerings in China. Additionally, Audi has been concurrently collaborating with Porsche (ETR:PSHG_p) to develop a new EV platform.

Audi offers two EV models - Q4 e-tron and Q5 e-tron - developed on Volkswagen's MEB platform in China.

According to the China Association of Automobile Manufacturers, Audi sold just over 3,000 units of its EVs in the first quarter in China. In comparison, BMW sold 21,646 EVs, and Tesla (NASDAQ:TSLA) outperformed both with sales of 137,429 cars. These figures highlight the significant gap between Audi's EV sales and its competitors in the Chinese market.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.