Audi and China’s largest automaker SAIC said they would work on EV projects.

Audi had been under pressure to slow its market share slide in China and had reportedly been looking for new EV platform technology due to issues with its software.

SAIC said: “The Chinese auto market is in the midst of the biggest transformation in its history. Therefore we will jointly work on a strategic approach that guarantees our future success.”

Details of any deal remained vague. It was uncertain if Audi wanted to acquire technology from SAIC sub-brand IM Motors or would developing an EV platform with the Chinese company.

Reuters had previously reported Audi was considering buying IM Motors’ EV platform.

Audi had said the launch of 10 new electric models was “the perfect response” to its Chinese competitors.

It had attributed the fall of sales in China to the lack of vehicles 'optimised' for the market.