Western Car Makers Consider Chinese Brand Names

Audi may be about to supplement its four-ring logo with a local brand name on future electric vehicles it makes and sells in China.

This move may be to protect its brand image in the west while leveraging domestic branding in China. It is the Chinese-built EVs that are developed in partnership with SAIC that Audi is looking to rebrand.

According to Audi it is all about “brand image consideration”. It reflects the use of automotive architecture co-developed with SAIC and an increased reliance on local suppliers and technologies.

When Reuters asked SAIC the reasoning behind this, the firm said only that the EVs would be “true Audi with authentic Audi DNA”.

Chinese automakers are winning back market share in their own back yard with tech-led EVs. Further, foreign car makers are more reliant on gasoline-engine models in their partnerships. The Chinese meantime are more interested in EVs.

The appeal of a German luxury brand over a Chinese luxury brand in the West is heritage and prestige. 

By saving the Audi logo for German-developed vehicles that employ only Audi technology, the brand can create a two-tier system to encourage the image-conscious to aspire to an Audi-developed EV.

Whether the German design adds anything over the competition is beside the point. 

Chinese sales of Western automotive brands have slipped of late. Perhaps Audi feels it is more appropriate to have a brand that feels more Chinese. This is somewhat akin to SAIC calling its Chinese-built cars in western markets MGs.

The fact is automakers are sensing that the strength of a Western brand in China is no longer the drawcard it once was. The locals now seem to be chasing Chinese-backed start-ups for what they represent.