Writer: Xiangshan Finance

The automotive sector has recently taken an unexpected and surreal turn.

Here's the scoop: Auto China, a German importer, has parallel imported the AUDI E5 Sportback and E7X—electric models exclusively crafted by SAIC-Audi for the Chinese market—into Germany for sale.

Here's the twist: this represents a case of 'reverse parallel importing.' Traditionally, Chinese dealers have imported German cars into China. Now, the tables have turned, with a German dealer importing Chinese-made Audis back into Germany.

Audi's headquarters, alarmed by this development, swiftly initiated legal proceedings to halt the sales. Their reasoning was solid: selling these cars in Germany without proper authorization meant that their dealer network couldn't provide the necessary maintenance or technical support, thereby putting consumer rights at risk.

However, as this news spread in China, the story took a different turn.

It transformed into tales of 'German Audi disowning the AUDI brand,' 'Audi headquarters suing AUDI,' and 'Audi turning against itself.'

In response, Audi China and SAIC-Audi issued a joint statement on September 21 to quash these rumors, clarifying that Audi headquarters' legal action was directed at unauthorized importers of AUDI models, not at rejecting the AUDI brand itself.

The misunderstanding was finally put to rest.

So, where did this confusion originate?

Let's delve into Auto China's background.

Based in Munich and established in 2022, the company specializes in parallel importing Chinese new energy vehicles into Europe.

In 2025, they secured German TÜV certification for the Xiaomi SU7, paving the way for its registration in Germany.

Currently, they offer brands such as Xiaomi SU7, Zeekr, JETOUR, and ZEEKR for sale. In mid-to-late August of this year, they added the AUDI E5 and E7X to their online catalog.

And the pricing? The domestic official guide price for the AUDI E5 Sportback hovers around 200,000 RMB, while Auto China nearly doubled that price in Germany.

Even at this inflated price, Germans found it a steal—electric vehicles in Germany are notoriously expensive.

On September 18, German media reported on Audi headquarters' legal action, prompting Auto China to remove the two models from their website.

Audi's legal stance is straightforward: under the EU's 'regional exhaustion' principle in trademark law, trademark rights are considered exhausted within the European Economic Area (EEA) only when the trademark holder or an authorized third party first places the goods on the EEA market. Since these AUDI vehicles were initially sold in China, not the EEA, Audi can still assert trademark infringement.

This rationale isn't new—a previous case involving parallel imports of the Volkswagen ID.6 followed the same precedent. The Hamburg Regional Court ruled that parallel imports constituted trademark infringement and ordered the vehicles' destruction.

Thus, Audi's move is legally justified. The issue lies in its misinterpretation as 'Audi disowning AUDI.'

Why such an interpretation?

Because the AUDI brand itself carries nuances.

According to the Tianyancha App, AUDI was introduced in 2024 as a new energy brand jointly developed by Audi and SAIC exclusively for the Chinese market. The key point here is: exclusively for China. From its inception, the brand was designed to cater to the domestic market.

Audi operates two distinct brand systems in China: the traditional Four Rings Audi and the new letter-based AUDI. At Audi headquarters, these are considered parallel brands. However, many Chinese consumers perceive the 'letter brand' as less authentic than the 'Four Rings' brand.

Now, with Germans importing the 'China-exclusive letter Audi,' speculation has arisen: Does Audi headquarters view the AUDI brand as inferior to local preferences? Is German Audi wary of competition from Chinese electric vehicles?

Audi China's statement emphasized two key points: first, the legal action is targeted at unauthorized importers, not the AUDI brand itself; second, AUDI is Audi's new electric brand in China and a cornerstone of its dual-brand strategy.

In simpler terms: 'We don't disown our child; we disown the middleman who took our child to Germany without permission.'

Why take the legal risk to sell these cars?

The truly fascinating aspect is why German dealers would proceed despite the legal risks.

The answer is simple: profit.

Take Auto China, for instance: the Xiaomi SU7 MAX starts at 479,200 RMB in Germany (excluding VAT), compared to its domestic guide price of 303,900 RMB.

After deducting transportation, tariffs, and TÜV certification costs, a significant price advantage remains. For parallel importers, this presents an enticing opportunity to attract German buyers while reaping substantial profits.

Moreover, there's demand from German consumers. China's smart electric vehicle technology has been gaining traction, with Chinese brands making a splash at the Munich Auto Show. European users eager to experience Chinese high-tech EVs are on the rise, presenting a business opportunity seized by parallel importers.

This is a classic example of market economics: if official channels are closed, informal ones will emerge.

However, parallel imports come with significant after-sales risks.

TÜV certification only verifies vehicle hardware safety and road compliance, ensuring eligibility for registration and road use. It doesn't cover intellectual property rights like trademarks or software copyrights, nor does it guarantee factory warranties, official OTA updates, or recall responsibilities.

What does this mean for consumers? If you buy a parallel-imported AUDI, it may be genuine, but the software may not receive updates, hardware may not be compatible, and you may have no recourse if issues arise.

Audi's statement makes it clear: AUDI models are not supplied through official channels outside China. In Germany and other markets, Audi and authorized dealers cannot provide technical support or after-sales service for these models.

In short, the actions of parallel importers harm AUDI users' rights and tarnish the brand's reputation.

Although the misunderstanding has been cleared up, its implications linger. First, it reflects the growing influence of China's automotive industry.

For decades, parallel imports have involved Chinese dealers bringing overseas luxury cars into China. Now, German dealers are voluntarily selling Chinese-made Audis back to Germany, indicating that China's new energy vehicles possess cross-market appeal in terms of product strength.

Auto China's willingness to take legal risks underscores domestic demand—essentially, a vote of confidence in Chinese EVs with hard cash.