German carmaker Audi will partner with Fa, the oldest car maker in China, to produce luxury electric vehicles. FA is China’s third-largest carmaker, and its cars include the famous Red Flag, a special limousine used by Chinese communist Party leaders. China is also the world’s largest electric car market, where FA competes with local companies Gali and Psyche. A new factory will be built in partnership with FA and Audi to make fully electric car. his deep friendship between Audi and Fa is a sign of a golden decade in Audi’s Chinese market,” said Werner Eshhorn, president of Audi China. China is the largest market for Audi in the world, with the company selling more than 700,000 vehicles in 2020. Audi aims to have one-third of its sales of electric cars in China by 2025. Audi (and its owner, Volkswagen) will have a 60 percent stake in the new factory, while Fa will have a 40 percent stake.
Fa already manufactures traditional Audi cars locally and has old ties to Audi and Volkswagen. The FA Company was formed in the 1950s by Mao Zedong, chairman of the Communist Party of China, as a result of his focus on industrialization. Its most popular car is the Hong qi, which was made for diplomats and Communist Party officials. However, in the 1980’s, the car’s popularity plummeted and later began to rise again in favor of Chinese brands. In 2015, on the 70th anniversary of the end of World War II, the Chinese president was seen riding in a Hong Kong limousine during a military parade. Fa sold 3 million vehicles in 2020, of which 200,000 were Hongqi brand cars. According to the company’s plan, by the year 2025, most of the Hogqi models will be electric vehicles.