Benzinga | Oct 13, 2020 02:45PM EDT

Audi, FAW Joint Venture To Produce Electric Vehicles In China

Audi AG (OTC:AUDVF) announced a partnership Tuesday with Chinese automotive manufacturer FAW.

The two companies have signed a memorandum of understanding to establish a company for the production of all-electric Audi models for the Chinese market.

Several all-electric Audi models will be produced for the Chinese market on a new Premium Platform Electric platform beginning in 2024, the companies said.

China is a key electric vehicle market -- the world's largest. The Chinese government has incentives for citizens to go electric, and General Motors Company (NYSE:GM) recently posted its first quarterly sales growth in China.

Tesla Inc (NASDAQ:TSLA) has also been increasing sales in China following the completion of its Gigafactory Shanghai, the automaker's first car production factory outside of the U.S.

Audi already plans to produce the all-electric Q2L e-tron and the plug-in hybrid A6L TFSIe.

The previously imported Audi e-tron has been produced in Changchun since the end of September.

In the future, Audi said it will further localize fully electric e-tron models in China. By 2025, Audi plans to generate approximately one-third of its unit sales in China with electrified cars.

Photo courtesy of Audi.