Mercedes-Benz dethroned Audi as the king of premium cars in China in January. 

Data shows that for the month, Audi sold 35,200 vehicles in the country, down 35.3 percent over last year, while Mercedes-Benz registered a double-digit growth rate, with deliveries reaching 58,800 units. BMW came second with sales of 51,300 cars, reporting a year-over-year rise of 11.3 percent. 

Analysts say that Audi's sales drop was partly due to its planned cooperation with SAIC Motor Corp. that has provoked dissatisfaction among FAW dealers. 

To the carmaker, no talks should be held with SAIC unless there is an appropriate solution in favor of FAW Group. 

At the same time, second-tier premium car manufacturers like Cadillac posted rapid increase in market share.  

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