Volkswagen Group is gearing up to take its China-made vehicles to more international markets, leveraging its growing expertise in Chinese automotive technologies. The move comes as the German automaker seeks to compete more effectively with Chinese rivals abroad.
VW Begins Exporting to the Middle East
The company began exporting China-made gasoline cars to the Middle East about six weeks ago. Thomas Ulbrich, chief technology officer of VW Group China, revealed that the automaker is now exploring which other Volkswagen China exports could suit markets in Southeast and Central Asia.
“This is what we are doing in a collaborative decision-making process with our headquarters in Germany, because we have to pay attention to the fact that we have the right portfolio of cars in each market,” Ulbrich told reporters in Hefei, home to VW’s Chinese production and innovation hub.
The decision reflects VW’s strategy of aligning global market demands with the growing capabilities of its Chinese production base.
China Hub Powers Both Gasoline and Electric Vehicles
VW’s Chinese factories can produce both internal combustion engines and electric cars. Ulbrich highlighted that while exports are expanding, Europe is not currently on the list due to differences in electronic architecture and software requirements for smart vehicles.
The Hefei hub is a centerpiece of VW’s “in China for China” strategy, which involves billions of euros in investment. The goal is to regain market share lost to aggressive local competitors. Accelerating product development and decision-making directly in China.
Cost Advantages and Technological Milestones
Developing vehicles in China also brings significant cost advantages. VW reports that new EV models can be produced in China at up to 50% less cost than elsewhere. This is all thanks to the scale of suppliers and technology available.
VW recently reached a milestone, becoming capable of fully developing new vehicle platforms and key technologies entirely outside Germany.
The automaker also plans to sell cars based on its flagship China-developed electronic architecture, a sophisticated system of control units and chips governing software features. Abroad very soon, Ulbrich added, without specifying which markets.
Looking Ahead
As global competition heats up, with Chinese automakers increasingly targeting overseas markets, Volkswagen is positioning itself to capitalize on its expertise. Volkswagen China exports are expected to expand steadily, offering a mix of gasoline and electric models optimized for international buyers. At the same time, it maintains cost-efficiency and innovation advantages.
With China as both a production and innovation hub, VW is now better equipped than ever to export high-quality, technologically advanced vehicles worldwide, solidifying its global presence.
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