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Weekly Newsletter

27 November 2025

Weekly Newsletter

27 November 2025

Volkswagen considers expansion of China-developed car exports to global markets

Volkswagen recently began exporting petrol limousines made in China to the Middle East.

Prasanna Gullapalli November 26 2025

Volkswagen is considering opportunities for China-developed car exports to additional international markets, according to Volkswagen Group China chief technology officer Thomas Ulbrich.

The company is seeking to leverage the same expertise in Chinese technology that it used to strengthen its competitiveness against manufacturers in China in global markets, reported Reuters.

Volkswagen recently began exporting petrol limousines made in China to the Middle East.

According to the news agency, Ulbrich said the company is now considering which other offerings produced in China could be suitable for export to various regions.

The automaker’s Chinese factories are equipped to manufacture internal combustion engine vehicles as well as electric vehicles (EVs).

Volkswagen is assessing export possibilities to nations in South East and central Asia.

However, the company said that there are currently no plans to export vehicles manufactured in China to Europe, citing differences in software technology and electronic architecture for smart vehicles, Reuters added.

Significant investment has been made by Volkswagen in its Hefei hub as part of its “in China for China” strategy.

This approach is intended to assist the company in recovering market share from Chinese competitors by accelerating decision-making and processes in product development.

Volkswagen, at the same time, is experiencing heightened rivalry in international markets as Chinese car-makers pursue expansion abroad to address domestic price pressures and surplus manufacturing capacity.

The company also announced the opening of a new batch testing facility in Hefei by Volkswagen China Technology, marking the completion of a key expansion project.

The automaker noted that it achieved a milestone that enables it to fully develop new vehicle platforms and core technologies, with all approval processes conducted outside Germany.

According to Volkswagen, developing a new EV model in China can be up to 50% less expensive than in other locations due to the scale of technology and supplier networks available in the nation.

Ulbrich also indicated that vehicles developed on Volkswagen’s flagship China-developed electronic architecture would be sold outside China "very soon", although no further details were provided, said Reuters.

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