Multiple Audi dealerships closed suddenly in China due to declining sales and profit margin

Due to declining sales and profit margin, several Audi dealerships have closed down, suspended operations, or had their authorizations revoked in various Chinese provinces and cities, including Henan, Guangxi, Beijing, Jiangsu, and Zhejiang.

In January 2026, several Audi owners reported that Kaifeng Jin’ao Audi dealerships have allegedly closed down. The multi-year maintenance packages they had purchased for 16,800 to 18,800 yuan (2,400 to 2,700 USD) were unusable. Some car owners had only purchased their vehicles six months prior when the dealership suddenly closed down. The dealership employees were also seeking legal recourse for unpaid wages.

FAW-Audi customer service further shared that the dealership withdrew from the FAW-Audi network on November 13, 2025, and advised car owners to contact the store for communication or consider seeking legal remedies.

In 2025, Audi’s sales in China decreased by 5% year-on-year, totaled 617,500 units, marking the second consecutive year of declining sales in the Chinese market.

Furthermore, although FAW-Audi officially claimed that its gasoline-powered vehicle sales and market share had returned to the top spot in China’s overall gasoline-powered luxury car market (including imports) after six years, compared to 611,100 units in 2024, its sales still declined by 6.7% year-on-year with 570,100 units sold in 2025. This is also a decline for the second consecutive year.

Under pressure, Audi has launched significant price reductions and promotions for several models. Some dealers are now offering the 2026 Audi A3 at prices starting from 106,700 yuan (15,300 USD), equivalent to a 40% discount. The Audi Q3 and Q4 e-tron are being offered at a starting price of 131,800 yuan (19,000 USD) and 157,900 yuan (22,700 USD), respectively, which is equivalent to a 50% discount.

Looking ahead to the rest of 2026, FAW-Audi plans to launch the all-new Audi A6L and the Audi A6L e-tron, the first all-electric sedan built based on the Premium Platform Electric (PPE) architecture designed for the Chinese market, later this year.

Source: 36kr, Mydrivers, FAW-Audi