Several Audi dealerships across China have suddenly shut down or lost authorization in key provinces like Henan, Guangxi, Beijing, Jiangsu, and Zhejiang, driven by a sustained drop in sales and shrinking profit margins. The closures have left customers with unusable maintenance packages, and dealership employees seeking unpaid wages, while raising broader questions about the luxury car market in China.
The Closures and Customer Impact
In January 2026, reports emerged of abrupt dealership closures, notably at Kaifeng Jin’ao Audi in Henan province. Customers who purchased multi-year maintenance packages – costing between 2,400 and 2,700 USD – now find them worthless, some having bought their vehicles only months prior. Meanwhile, former employees are pursuing legal action to recover unpaid salaries, highlighting a collapse in dealership stability.
FAW-Audi customer service confirmed that Kaifeng Jin’ao withdrew from the network on November 13, 2025, leaving customers to seek resolution directly or through legal means. This situation underscores a critical issue: when dealerships fail, warranties and service agreements can become worthless overnight.
Declining Sales in a Key Market
The closures are a direct result of Audi’s weakening performance in China. Sales dropped by 5% in 2025, totaling 617,500 units, marking the second consecutive year of decline. Even with FAW-Audi’s claims of regaining top spot in the gasoline-powered luxury segment, sales still fell by 6.7% to 570,100 units.
This decline is not just a minor fluctuation; it signals a fundamental shift in consumer behavior and market competition. The Chinese automotive market is increasingly competitive, with domestic EV brands gaining ground rapidly, forcing established foreign players like Audi to adapt or risk losing share.
Aggressive Discounts and Future Plans
To counter the downturn, Audi has resorted to deep price cuts. The 2026 Audi A3 is now available starting at 15,300 USD (a 40% discount), while the Q3 and Q4 e-tron are priced from 19,000 and 22,700 USD, respectively (discounts of up to 50%). These aggressive promotions indicate desperation to clear inventory and retain market share.
Looking ahead, FAW-Audi plans to launch the all-new Audi A6L and the all-electric A6L e-tron later in 2026. The A6L e-tron, built on the Premium Platform Electric (PPE) architecture, is designed specifically for the Chinese market and represents Audi’s attempt to regain traction in the rapidly growing EV sector.
The wave of dealership closures and steep discounts highlights the challenges facing luxury automakers in China. Audi’s situation demonstrates that even established brands are vulnerable to shifting consumer preferences, rising competition, and economic pressures. Whether the upcoming EV launches will be enough to reverse the trend remains to be seen.
