Initial cars
The company initially began producing 5 hp and 10 hp twin-cylinder engine automobiles near Cologne in 1901.
The first Horch had a 4.5 hp engine, with an alloy crankcase, a unique achievement in those days. It had an open-body design, with lighting provided by lanterns containing candles. In contrast with the powerful cars of later years, the first Horch could barely reach a top speed of 32 km/h. It was significant at that time because it used a friction clutch, and had a drive shaft providing power to the wheels.
The firm soon encountered financial difficulty, and Horch sought new partners.
In March 1902, August Horch produced a 20 hp four-cylinder car with a shaft drive in Reichenbach in Vogtland. Horch cars were considered more advanced to those being built by Mercedes or Benz (who were then separate manufacturers).
By 1903, Horch had built a car with a four-cylinder engine. In March of the following year, he introduced his new car at the Frankfurt Fair.
In 1904, August Horch developed the first six-cylinder engine, which appeared in 1907. In 1906 a Horch automobile driven by Dr. Rudolf Stöss from Zwickau won the Herkomer Competition (equivalent to a 'brand-name' world championship at the time). In the 1920s, Moritz Stauss, a cosmopolitan Berliner, was the principal stockholder of the Horch company. He succeeded in making the Horch brand highly desirable by introducing art into the firm's advertising. He recognized that only a brand emphasising Horch's unique characteristics would be successful.
In 1923, Paul Daimler (a Stauss associate) worked for Horch as the chief engineer for 8-cylinder engines. Horch vehicles were subsequently the first to introduce 8-cylinder engines in series production.