German luxury car manufacturer, Audi AG, owned by Volkswagen AG (OTC:VWAGY), is in talks with SAIC Motor Corp to acquire an electric vehicle platform.
SAIC Motor is a Chinese state-owned automaker. The company plans to take over the EV platform owned by SAIC’s EV unit, IM Motors, reported Reuters.
The development comes in the wake of Audi’s subpar sales performance in China. It also reflects the pressure on legacy automobile manufacturers to capture a piece of the world’s largest auto market.
The report further noted IM Motors began delivering its first model, the L7 sedan, in June 2022 as a premium EV brand.
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Audi, so far, has been using Volkswagen’s EV-dedicated MEB platform for models on offer in China, the report added.
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Price Action: VWAGY shares are trading higher by 1.30% at $17.12 on the last check Wednesday.
