On January 18, Audi, Volkswagen Group and China FAW jointly announced that the Audi-FAW New Energy Joint Venture will settle in Changchun. The official project plan shows that the new company will introduce the PPE high-end pure electric vehicle platform jointly developed by Audi and Porsche. The first plant plans to invest more than 30 billion yuan. The first model will be put into production in Changchun in 2024. At the same time, future PPE products will be sold by FAW Audi Sales Company, a wholly-owned subsidiary of FAW-Volkswagen. It is worth noting that the name of the new company is Audi FAW instead of FAW Audi. According to official information released by Audi, Audi and Volkswagen Group will hold 60% of the new joint venture, and FAW Group will hold 40% of the shares, making it the first holding joint venture of Audi in China. Audi has always had an absolute advantage in the luxury car market in China, having won the luxury car market sales champion for 30 consecutive years. However, because its shareholding ratio in the FAW-Volkswagen Audi joint venture is only 10%, and the profit it receives is limited, it has always been Audi's long-cherished wish to increase its shareholding ratio. This time, the acquisition of Audi FAW shares control, Audi finally got its wish. However, FAW, which transferred control in the new cooperation, is not a “loser”. It seems that SAIC intends to compete with FAW for the national property rights of Porsche. It is reported that in 2019, when the CEO of Volkswagen Group Herbert Diess visited China to meet with SAIC Chairman Chen Hong, the two parties not only discussed the SAIC Audi project, but also exchanged views on the domestic issue of Porsche. No relevant news came out. The Audi FAW new energy joint venture project will introduce the PPE platform, which means that Audi FAW has the basis for the production of pure electric Macan and other Porsche electrified products. In this regard, a person close to Audi China told Future Auto Daily (ID: auto-time): “Within the Volkswagen Group, Audi, Porsche and Bentley electric vehicles will all adopt the PPE platform, and the new products may not necessarily be Porsche pure electric vehicles. It may also be a pure electric version of the Audi Q7. However, with the introduction of the PPE platform, FAW Group will undoubtedly have a greater chance of acquiring the national property rights of Porsche electric vehicles." At present, independent car companies are building new high-end pure electric vehicle brands. Dongfeng has launched Lantu and Great Wall has prepared the SL project. FAW has fallen behind by half a beat. Through the operation of Audi FAW, the technology and experience of operating high-end electric vehicle brands can be stored. At the same time, FAW will also usher in a new "profit cow". “New energy joint venture products are sold by FAW Audi Sales Company. Sales companies often hold the pricing power of new models, and they are also the most profitable organization in the enterprise. According to market rules, the higher-end models are more profitable. Models perform well in the market, so FAW will also get a "bowl of fat"." The above-mentioned person analyzed. In addition, the establishment of Audi FAW will also help Audi further enhance its electrification capabilities in BBA (Mercedes-Benz, BMW, Audi). In recent years, BBA has increased the production and sales of new energy vehicles in the Chinese market. The total annual sales volume of new energy vehicles launched by BMW in the Chinese market has reached 50,000. Mercedes-Benz defines 2021 as the "year of EQ" and expects to invest in the Chinese market a variety of domestic pure electric models such as EQA, EQB, EQS. In this regard, Audi is slightly weaker. Up to now, the only new energy models that Audi has achieved localization are Audi Q2L e-tron and Audi A6L new energy models. As the PPE platform enters China, the process of localization of Audi electric vehicles will be further promoted, and the electrification battle between BBAs will also enter a new round of wrestling.