The Sino-German auto joint venture FAW-Volkswagen Automotive sold 253,635 Audi cars in the first half of 2017, down 12.2 percent from last year.
Liang Liang, spokesperson for Audi in the company, said that despite the fall, sales had increased month-on-month starting from February.
In June sales stood at 51,651, up 2 percent on last year. It is the first time since December that monthly sales were higher than the previous year.
Audi is the leading brand in China's luxury car market, with more than 4 million users. It is followed by Mercedes Benz and BMW.
Last year Audi sold 589,088 units, 3.73 percent more than in 2015, accounting for nearly one-third of the domestic luxury car market.
Huang Long, a spokesperson for FAW-Volkswagen, said that to cope with fierce market competition, the company was adjusting the product structure and would develop more Audi products for young consumers.
Founded in 1991 and based in Jilin province, the company mainly manufactures Audi and Volkswagen marque passenger cars for sale in China.