Audi launched its first innovation and technology center in China, located in Shanghai, on April 17, marking a key step in the German automaker's global electric vehicle strategy.

The center is Audi's first overseas facility dedicated to intelligent EV technology and its first full value-chain localized research and development entity in China.

The innovation center will focus on developing the next generation of the Advanced Digitized Platform (ADP) and AI-driven intelligent cockpit features. Its goal is to equip Audi models with industry-leading intelligent capabilities while maintaining German luxury quality and safety standards.

The establishment of the center signifies that global luxury auto brands are entering a new era of R&D cooperation with Chinese partners, jointly innovating and building electric vehicle platforms tailored for the Chinese market.

The shift reflects the evolving role of China in the global auto industry, highlighted by increased German investment in the country's manufacturing sector.

Data from the German Economic Institute indicates that in 2025, new German investment in China reached about 7 billion euros ($8.19 billion), a 55 percent increase year-on-year, marking the highest level since 2021.

The Audi innovation center's R&D model has shifted from a German-led approach to a Sino-German joint innovation model, in which the Chinese team is no longer just a technology executor but a core participant in the innovation process.

Under this new approach, a joint Chinese-German R&D team can swiftly respond to Chinese consumers' needs, integrating Audi's luxury heritage with Chinese smart technologies. The ADP platform and collaboration with SAIC's mature supply chain have shortened the development cycle for new Audi vehicles by more than 30 percent.

The center's impact is already visible in upcoming models, including the AUDI E7X, a flagship SUV set to debut at Auto China 2026 in Beijing.

The E7X features a million-yuan-class all-aluminum chassis architecture, Pirelli P0 tires, Brembo brakes, and a 900V high-voltage architecture. It uses a battery pack from the Chinese battery giant CATL, providing up to 751 kilometers of China Light-Duty Vehicle Test Cycle (CLTC) range and enabling 429 kilometers of range with just 10 minutes of charging. The E7X's smart cockpit uses the upgraded Audi Assistant 2.0 with advanced AI capabilities.

Source: The Paper