Audi and Shanghai Automotive Industry Corporation (SAIC) have agreed to work together on developing electric vehicles, with the aim of strengthening their presence in the Chinese car market. This announcement was made by SAIC, a Chinese state-owned car maker, on Thursday.

The agreement between Audi and SAIC comes after Audi engaged in discussions with SAIC, the owner of MG Motor, about the possibility of sourcing an electric vehicle platform from SAIC’s IM Motors brand. This would serve as an alternative to Audi’s delayed Scalable Systems Platform (SSP) architecture, which is part of the Volkswagen Group.

SAIC stated, “All stakeholders agree that the Chinese auto market is currently undergoing the biggest transformation in its history. Therefore, we will work together on a strategic approach that ensures our future success,” according to Bloomberg.

Audi’s plans to base their future electric vehicles on the SSP architecture have been disrupted due to ongoing software development delays, including the creation of a new operating system known internally as E3 2.0.

E3 2.0 is a crucial component of the SSP architecture, which aims to incorporate level three autonomous driving technology.

As an alternative for models intended for sale in China, Audi is exploring the possibility of using SAIC’s electric vehicle platform, which was developed for the IM L7 saloon and IM LS7 SUV. This platform supports an 800V electric architecture and was originally designed for vehicles ranging from 2800mm to 3200mm in wheelbase length.

Audi, under pressure to improve sales in China, recently announced that Gernot Doellner will take over as CEO, replacing Markus Duesmann. This leadership change is part of Audi’s efforts to restructure the German car manufacturer.