Audi has taken the lead in sales and dominated the luxury car market at the beginning of its entry in China. During the second stage (2001-2011), the localization of true Audi standard has experienced a shallow-to-deep and easy-to-difficult process. Moreover, FAW-Volkswagen reforms the marketing channel and establishes independent sales network for Audi A6 to start top-grade brand strategy of Audi. This is also the period that a large number of international competitors began to enter and compete in Chinese markets. To outperform competitors, Audi adopted such-called "localization of the whole value chain" strategy, i.e., realizing localization in product R&D, procurement, production, marketing and other links. The strategy allowed the quality to be more stable and the cost to be reduced effectively. With this strategy, by 2012, Audi became the most popular car brand, and its sales volume grew at the speed of 100,000 vehicles per year. Audi defines the concept and image of Chinese "luxury car" in a real sense and an all-around manner.

Audi is one of Germany's great automobile manufacturers that have the longest history. Its principle of adhering to high-tech level, high-quality standards and high-powered criteria has led the Audi brand to becoming the landmark among the most notable luxury cars. Audi's history in China can be traced back to 1988, when FAW and Audi signed the "Technology Transfer License Contract on the Production of Audi FAW". In 1991, FAW-Volkswagen Automotive Co., Ltd. (hereinafter referred to as FAW-Volkswagen) was founded. With 25 years of development, FAW-Volkswagen has set up three bases in the cities of Changchun, Chengdu and Foshan, which are respectively located in the Northeast, Southwest and South of China, as well as seven large-scale plants that are specialized in production. Audi is the first luxury car brand stepping into the Chinese market. Over the past 30 years, it has made remarkable achievements. The FAW-Volkswagen Audi "trilogy" case has described Audi's development history in China, and the situation as well as the strategies of FAW-Volkswagen Audi during three stages. The first stage (1987-2000) of development for FAW-Volkswagen Audi in China has laid a foundation for its leading position among luxury car brands. The case describes the founding of joint ventures, the conflicts among partners, and the strategies adopted to initiate and lead Chinese luxury car industry, all of which are very typical for most foreign entrants into Chinese markets during the beginning of China's 'opening up'.