SAIC Volkswagen began production of the new A7L sedan at its joint venture plant in Shanghai at the weekend, the company announced.

The A7L is Audi’s new flagship sedan model to be produced in China with the company claiming the first model to roll off the production line was the 24 millionth Audi model to be produced in the country.

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Audi vehicles are also produced by Volkswagen’s other main joint venture company, with China’s FAW Group, with total Audi sales surging by 39% to 418,749 vehicles in the first six months of 2021.

SAIC said it would continue to leverage the strength of Audi’s products as well as breakthrough innovations and cutting edge technology to redefine luxury vehicles for Chinese consumers.

Company’s president Wang Xiaoqiu said: “In the next three years SAIC Audi will deliver another four flagship models to broaden our range of high end, petrol powered and fully electric vehicles. This will help cement Audi’s lead position in China’s premium car market.”

SAIC Audi also plans to expand its sales network by 200 showrooms in 80 cities across the country.

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Volkswagen Group China expects the country to become the world’s largest market for premium vehicles in the coming years, with annual sales rising to 4.5m units in the next 10 years from 3.1m units at present.

Company CEO Stephan Woellenstein added: “As a strong brand with a strong portfolio, SAIC Audi will provide a differentiated and complementary product line up, combined with innovative sales methods and a focus on customer experience.”