When Audi executives first saw the Zeekr 001 in 2021, a long-range electric vehicle with European aesthetics, it was a wake-up call for the premium German auto brand — if it wanted to compete with the Chinese, it needed their technology.

“The Zeekr 001 back then shocked quite everyone,” said Stefan Poetzl, president of SAIC Audi Sales and Marketing. “We needed to do something about it.”

To boost its EV lineup for Chinese consumers, Audi built the AUDI E5 Sportback in just 18 months using technology provided by Chinese partner SAIC, including batteries, electric powertrain, infotainment software and advanced driving assisted systems.

Audi expects to start delivering the $33,000 EV to customers in China this month and its global rivals are now also looking to use Chinese intellectual property to roll out new models rapidly.

Toyota and Volkswagen have joint development plans for China-dedicated models with technology from Chinese partners GAC and Xpeng, respectively.

Renault and Ford want to go one step further and develop global models on Chinese EV platforms, sources said. Renault did not respond to a request for comment. Ford declined to comment.

Such licensing deals make up relatively small but growing revenue streams for Chinese EV makers and, for now, offer a new quid-pro-quo. Global automakers need Chinese technology to leapfrog development hurdles and launch new EVs quickly.

Meanwhile, Chinese companies desperately need additional revenue amid a bruising price war at home and intensifying trade war abroad.

“It is a very smart, win-win solution,” said Will Wang, General Manager of Shanghai-based consulting firm Autodatas, which provides teardown reports of best-selling EV models.

© Dawn Business