by ZHOU Shuqi

Two weeks after the launch of the AUDI E5 Sportback, Audi is testing the waters in China through aggressive pricing while shedding its iconic four-ring logo.

"AUDI" is a new marque created by SAIC Motor and Audi, operated under their four-year-old joint venture SAIC Audi. It marks the first China-exclusive luxury brand for the German automaker.

Priced at 235,900 yuan（About US$33,000), the E5 Sportback targets young first-time EV buyers through thin margins.

Unlike earlier German-led models, AUDI uses Chinese EV and smart-driving technology, with part of its R&D team relocated to Shanghai to cut costs and accelerate launches.

Store visits by Jiemian News in Shanghai and Shenzhen showed steady foot traffic despite the absence of test drives. Sales staff reported around 30 presale deposits in Shanghai within five days and 100 in Shenzhen over two weeks. While far below the massive presale volumes of China's new EV makers — which often reach tens of thousands within hours — the results are seen as a positive sign that is helping draw visitors to Audi showrooms.

Some buyers have questioned the absence of the four-ring badge, dismissing the car as a rebadged IM Motors L6. SAIC Audi, however, emphasizes the century-old heritage of the "AUDI" name and points to Chinese partners such as Momenta and CATL to distinguish the E5 Sportback from existing Audi EVs.

Audi's push comes as its sales in China slid 10.2 per cent in the first half to 288,000 units, leaving it behind Mercedes-Benz and BMW. Deliveries of pure EVs fell 23.5 per cent year on year to 7,897. Industry analysts noted that German-led EVs lag Chinese rivals on cost and features, with software issues, local EV plant delays, and repeated postponements of the Audi Q6L e-tron widening the gap.

"The challenge for European carmakers is not developing EVs but producing them at low cost to compete in China," said Stephen Dyer, partner and managing director at AlixPartners.

The E5 Sportback is aimed at the 200,000–250,000 yuan price bracket, one of China's most competitive segments. "Carmakers only get one shot at pricing," said Li Yanwei, an analyst and expert advisor at the China Automobile Dealers Association (CADA). "Neither SAIC nor Audi will allow this car to fail, even if it means sacrificing margins."

How the model performs after launch will be a key test of whether foreign luxury brands can adapt to China's price-sensitive EV market.