According to a Bloomberg report, the Volkswagen Group is preparing to significantly increase the export of vehicles manufactured in China. The aim is to leverage lower local production costs to access new overseas markets, against the backdrop of an ongoing price war in China.
The Volkswagen Group has already begun shipping China-made vehicles to the Middle East and Southeast Asia. CEO Oliver Blume said they’re also evaluating the possibility of selling new Chinese-developed models in Africa and South America.
Blume stated that the technology and products developed in China have created new export opportunities for the Volkswagen Group. This enables the Group to enter regions that were previously difficult to serve effectively from Europe and serves as a crucial strategic lever.
This year, the VW Group plans to launch 20 new electrified models in China in an attempt to reverse its declining sales trend. Last year, the Group delivered approximately 2.7 million vehicles in China, significantly lower than the pre-pandemic level of over four million units.
The downturn in the Chinese market has particularly impacted Porsche, a VW Group brand. Due to weak demand for luxury cars, Porsche’s sales in China have dropped sharply. Porsche manufactures exclusively in Europe, and is also affected by trade barriers between the US and China.
The Volkswagen Group believes it is crucial to regain market share through competitive pricing. Ralf Brandstätter, the head of Volkswagen Group China, noted that while competition in the Chinese market remains fierce, overall listed prices have stabilized. The Group does not expect prices to rebound; instead, it is adjusting its cost structure to ensure new models can achieve profitability under current market conditions.
IT Home reports from the coverage that the Volkswagen Group anticipates 2026 will be a transition year in China. While sales of electrified models are expected to continue growing, overall vehicle sales may not improve. The Group still aims to maintain its position among China’s top three automakers and plans to increase its market share from about 11 to 15 per cent by 2030.
Oliver Blume emphasized that nowhere in the world is the industry transformation happening as rapidly and comprehensively as in China, stating, “Only success in China leads to success elsewhere.”
