A new A7L sedan rolled off the production line at SAIC Volkswagen's plant in Shanghai on Sunday, marking Audi's latest effort to explore the Chinese market.

The sedan, which is SAIC Volkswagen's 24 millionth vehicle, is also Audi's flagship model produced in China.

SAIC, China's largest carmaker by sales, is Audi's second Chinese partner to produce vehicles in the country.

The German company, which is the premium arm of Volkswagen AG, is also producing sedans and SUVs with China's FAW Group.

SAIC President Wang Xiaoqiu said SAIC Audi will leverage its strength in products as well as breakthrough innovations and cutting-edge technologies to redefine luxury vehicles for Chinese consumers.

He said SAIC Audi will help cement the German marque's leading position in China's premium car market.

"In the next three years, SAIC Audi will deliver another four flagship models to open the layout of high-end gas-powered vehicles and fully-electric products," said Wang.

Stephen Woellenstein, CEO of Volkswagen Group China, said China is expected to become the world's largest premium vehicle market in coming years.

He estimates that premium vehicle sales will grow from 3.1 million units from now to over 4.5 million in the next ten years.

"As a strong brand with a strong portfolio, SAIC Audi will provide a differentiated and complementary product line-up, combined with innovative sales methods and a focus on customer experience," said Woellenstein.

SAIC Audi is exploring a customer-centric e-commerce system. Among other things, the models have fixed prices across the country and customers can place orders online.

SAIC Audi is planning to open 200 showrooms in 80 cities across the country.

Audi has sold a total of more than 7 million vehicles in the Chinese market. Last year, it delivered 727,358 vehicles in the country. The figure hit 418,749 in the first half of 2021, up 38.6 percent year-on-year.