Doellner called German Chancellor Friedrich Merz's February visit to China a "positive signal for business and cooperation," noting that stable and open Germany-China relations are critical amid global uncertainty, and that government engagement provides confidence for foreign companies investing in the market.

INGOLSTADT, Germany, March 21 (Xinhua) -- China remains a central focus for Audi as the German automaker ramps up electric vehicle (EV) production and strengthens local partnerships, said Gernot Doellner, Audi's global chief executive, highlighting China's rapid technological advancement and market potential.

As Audi unveiled its 2025 financial results, Doellner told Xinhua that China's rapid pace of innovation is reshaping the automotive landscape.

He depicted China as not just a large market but also a place where technology adoption and mobility trends evolve faster than anywhere else, particularly in the new energy vehicle (NEV) segment, creating both opportunities and responsibilities for Audi.

Audi has a long-standing presence in China, with nearly 40 years of engagement and over 35 years of local production, he said. "These decades of collaboration reflect how closely Audi is connected to Chinese customers."

According to Doellner, China remains one of the world's most dynamic automotive markets and a central hub for technological innovation and industrial development.

The Audi CEO said that the automotive market is changing rapidly as NEV makers and technology companies enter the sector. "Competition is intensifying, but we see it as a challenge and a driver for our own improvement."

"The old model of engineering cars in Germany and shipping them directly to China no longer works. To succeed, we need to develop products locally, with Chinese consumers and ecosystems at the center," he said.

To respond to these shifts, Audi launched a sister brand in China two years ago, targeting the fast-growing NEV market while strengthening the localization of its core four-ring brand. "This dual-brand strategy allows us to address a broader range of customer needs and accelerate product introduction," Doellner said.

Audi is working closely with local car-marking partners, including FAW and SAIC, as well as technology firms such as CATL and Huawei. Doellner said these collaborations enable the company to combine German engineering expertise in chassis, safety and body structure with China's digital ecosystem, connectivity, and battery technology.

"This is how we bring the best of both worlds together," he said.

Since 2025, Audi has introduced several battery-electric vehicles in China and plans to roll out additional models, including the A6L e-tron, in 2026.

Doellner said the company develops each model in close collaboration with local teams and partners to ensure alignment with Chinese customer preferences and usage patterns. These vehicles integrate German engineering standards with locally relevant technologies in infotainment, driver assistance, and connectivity.

Doellner called German Chancellor Friedrich Merz's February visit to China a "positive signal for business and cooperation," noting that stable and open Germany-China relations are critical amid global uncertainty, and that government engagement provides confidence for foreign companies investing in the market.

Beyond products, Audi is adapting its internal structure and global operations to meet market challenges. Doellner said that the company is streamlining decision-making, clarifying priorities, and shortening development cycles to respond faster to market changes.

On supply chains, he emphasized diversification to increase resilience. "We want a robust supply chain, not one dependent on a single source," he said.

Audi's strategy has appeared to be paying off. In 2025, the company delivered 617,514 vehicles in China, ranking among the leading high-end automotive brands in the country. Doellner noted that sustained market openness and rising consumer demand provide German automakers with long-term growth opportunities.

Looking ahead, Doellner said that Audi will continue its dual approach of internal combustion and EVs to meet diverse consumer needs, while accelerating the rollout of locally tailored EVs. "China not only offers significant growth opportunities for Audi, but also serves as a benchmark for innovation in the global automotive industry," he said.

"Our goal is to combine German automotive DNA with the pace and creativity of the Chinese ecosystem to remain competitive in a rapidly evolving market," he added, stressing that the company's commitment to Chinese partnerships is long-term, with a focus on strengthening technological capabilities and its position in the market.