FAW-Volkswagen Automobile Co. Ltd, China's top vehicle producer, will launch a new Audi A6 to challenge BMW's hold on China's high-end car market, the Beijing Morning Post reported.

The new A6 will go on sale in the middle of this year with a 4.2-liter V-8 engine and the choice of front- or all-wheel drive. It will have six gears of manual and automatic transmissions, the newspaper said.

The premium-class auto will become China's most luxurious sedan, competing against high-volume sedans such BMW's 5-series, Li Wu, general manager of FAW-Volkswagen's sales company, was quoted as saying.

The new A6, like the present A6 and A4, are made at FAW- Volkswagen, German Volkswagen's joint venture with China's First Automotive Works Corp (FAW), in northeast China.

Before announcing the plan to produce new Audi A6, the FAW-Volkswagen cut the prices of Audi A6 and A4 by up to 43,000 yuan (US$5,180) from late last week, after BMW reduced the prices of its 5-series by 80,000 (US$9,638) to 100,000 yuan (US$12,048) in January to seize the high-end market.

Audi, part of the Volkswagen group, sold 64,018 cars in China in 2004, with 46,177 units being Audi A6 and A4.

(Xinhua News Agency March 16, 2005)