(Yicai Global) April 19 -- SAIC Volkwagen Automotive, the joint venture of China’s biggest carmaker SAIC Motor and Volkswagen Group, yesterday unveiled its first two new models, which it plans to start selling in China in the first quarter of next year.

The models are the brand new A7L Sedan, a flagship positioned as a C+ performance executive car, and the Audi concept named Shanghai, a luxury pure electric sport utility vehicle. The Shanghai-based firm also said it will launch more fuel-driven and electric-powered models over the next five years.

In the early days of the joint venture, product quality was the main demand of its two shareholders, with no direct requirements for sales and profitability, Jia Mingdi, general manager of the JV’s Audi sales division, told Yicai Global.

For SAIC, an important mission of the JV is to help transform the company, because the tie-up will bring experience and practical ability to SAIC to directly operate a luxury car brand, Jia said.

As well as being the world’s largest luxury car market, China is also Audi’s single largest market. The automaker hopes to achieve annual sales of 1 million vehicles in the market in 2023, compared with 726,300 last year. Audi estimates the size of China’s luxury car market will soon increase to 4 million from last year’s 2.5 million.

Regarding cooperation with SAIC, Audi China Chief Executive Werner Eichhorn told reporters last week that the company hopes to quickly boost market share in the country with the introduction of a series of new models.

The partnership with SAIC has made Audi the first luxury car brand to have two local partners in China. Audi and FAW Group, headquartered in Changchun in northern Jilin province, have been working together for 25 years.

Editor: Peter Thomas