When Audi executives first encountered Zeekr 001 in 2021, the long-range electric vehicle with a European design language signalled a sharp competitive shift. According to Stefan Poetzl, president of SAIC Audi Sales and Marketing, the car “shocked quite everyone,” prompting Audi to rapidly recalibrate its electric vehicle strategy. The German automaker moved to develop the AUDI E5 Sportback in just 18 months, specifically for Chinese customers, drawing heavily on technology from its local partner SAIC. This collaboration enabled Audi to incorporate Chinese-made batteries, electric powertrains, infotainment systems and advanced driver-assistance features into its offering.
Audi will begin deliveries of the $33,000 E5 Sportback to customers in China this month. The accelerated rollout underlines a wider shift as global automakers increasingly turn to Chinese intellectual property to speed up new model development. Toyota and Volkswagen are pursuing similar strategies, forming joint initiatives with Chinese partners GAC and Xpeng for China-specific models. Renault and Ford are also exploring ways to adapt Chinese EV platforms for global models, sources familiar with the plans said. Renault began this process with the Dacia Spring EV, built on a Dongfeng platform for European sales, and is now advancing with an electric Twingo designed at its Shanghai research centre, supported by Chinese engineering firm Launch Design.
This licensing trend is creating a modest but growing revenue stream for Chinese EV manufacturers at a time of fierce domestic price wars and rising trade tensions. Will Wang, general manager at Shanghai consultancy Autodatas, described it as a “win-win arrangement” that helps legacy automakers overcome development bottlenecks while offering Chinese firms new income channels. Leapmotor has already partnered with Stellantis to market EVs beyond China and is in talks with other brands to license its technology. Ford is reportedly seeking a Chinese partner to supply EV platform technologies, while Volkswagen is evaluating whether Xpeng’s systems can supplement or replace its own. Analysts point out that established automakers often struggle with agile EV architectures capable of frequent updates due to complex internal structures, making Chinese platforms an attractive option.
Industry observers compare the trend to the “Intel Inside” model of the 1990s, when premium computer makers highlighted U.S. chip technology. In the EV sector, Chinese firms now provide complete “white-label” battery-electric vehicle solutions, from chassis to software, enabling even low-volume producers to launch models faster and at lower cost. CATL has adopted this model by licensing its battery technology for a Ford plant, while Abu Dhabi-based CYVN Holdings has used Nio’s chassis and software to develop its own luxury EV after acquiring McLaren. These partnerships may also allow less-industrialised countries to establish their own national EV brands using Chinese technology, said Forest Tu, a former CATL executive who now runs Mapleview Technology.
Despite the clear cost and time advantages, some industry leaders warn of the risks of overreliance on external technology. Former Aston Martin CEO Andy Palmer cautioned that automakers could lose their ability to differentiate if they become too dependent on outside platforms, effectively turning into retailers rather than innovators. Oliver Wyman analyst Marco Santino echoed the sentiment, advising traditional automakers to integrate their own innovations into licensed platforms to protect brand identity. Whether the balance of benefits between Chinese technology providers and global automakers endures remains to be seen, but for now, licensing Chinese EV technology has become a pivotal strategy for many international carmakers seeking to close the gap with their Chinese competitors.
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