Volkswagen to Export Cars from China to New Markets

Volkswagen intends to commence exporting vehicles from its Chinese manufacturing plants to various international markets, including those in Asia, South America, and the Middle East. This strategic move was announced by the company’s China head. The automaker is also prepared to compete vigorously within the Chinese domestic market.

Several car manufacturers in China, including Volkswagen, are currently addressing the challenge of utilizing excess production capabilities, particularly as the annual demand for automobiles has remained relatively stable at approximately 22 million units since 2019.

Ralf Brandstaetter clarified that while exports to the U.S. and Europe would be limited to the Tavascan model, other regions are viable options. He noted the potential in Asian markets, South America, and the Middle East during an event preceding the Shanghai auto show.

Brandstaetter stated, “These regions are receptive to products originating from China. We possess competitive models and are actively planning to export from China to these areas.”

In response to the increasing competition from local manufacturers in China, Volkswagen is developing a new vehicle platform designed for both battery-electric vehicles and EVs equipped with range extenders. These vehicles include a small combustion engine to provide additional range.

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Brandstaetter commented on the uncertainty of predicting the market share of each EV type by 2030. He emphasized the necessity for adaptable platforms. He added that key factors for success in China encompass assisted driving technologies, effective cost management, and drivetrain flexibility.

“There is no reason why Volkswagen can’t be as fast and as competitive as a Chinese startup with this approach,” he said.