Last year, Audi's annual sales on the Chinese mainland and in Hong Kong broke the 400,000-unit benchmark, increasing 29.6 percent year-on-year.

To reach its target of 700,000 units by 2015, the company must maintain an annual growth rate of 30 percent in actual sales, Boesch said.

"China is the most important market for Audi. Audi AG believes its current cooperation with FAW is the best way to work together," he added.

Boesch said he is optimistic about the premium SUV market in China.

"I remain very confident of the long-term growth of Audi and the luxury auto market in China," he said.

"For one thing, China's GDP will maintain healthy and stable growth for a long time. Also, customers here are looking forward to more localized products," said Boesch.

Thus Audi's localized strategy will be aligned with the personalized demands of the customers. Boesch said Audi has an excellent understanding of Chinese customers' psychology that has been honed through 20 years in China.

In a market with such potential, Audi should pursue quality while growing steadily, he said.