Business · Companies · 10 hrs ago
Volkswagen shifts China strategy to target export markets
Volkswagen is shifting its China strategy from making cars mainly for Chinese buyers to using the country as an export and innovation hub.
China’s car market is under pressure: market researchers expect fewer than 19 million vehicles to be sold there in 2026, down from more than 24 million in 2025.
Volkswagen’s China deliveries fell 38.5% in the third quarter, to about 406,000 vehicles.
The company plans to use its Chinese network to reach markets in Southeast Asia, southern Africa and South America, and has started exporting to Kazakhstan and Uzbekistan.
Lower costs and faster development in China are among the reasons Volkswagen wants to build and export vehicles there.
The company aims to keep its 11% share of the Chinese market over the long term, while Mexico, Egypt, Vietnam and Australia are among the markets it plans to target next.
Volkswagen is shifting its China strategy from producing for China to using the country as an export and innovation hub.
The company plans to serve more markets in Southeast Asia, southern Africa and South America through its Chinese development and production network.
The shift comes as China’s car market weakens and competition from Chinese automakers grows.
VW China chief Ralf Brandstätter said researchers expect fewer than 19 million vehicles to be sold in China this year, down from more than 24 million in 2025.
Volkswagen reported a 38.5 percent drop in its China deliveries in the third quarter, to about 406,000 vehicles.
- Who
- Volkswagen, including its China operations.
- What
- It is shifting its China strategy to use the country as an innovation and export hub for other markets.
- When
- Announced on October 28, 2026.
- Where
- The strategy was announced in Hefei, eastern China, and targets markets beyond China.
- Why
- China’s car market is weakening and competition from local brands is increasing.
This story does not have two clearly opposing sides.
Volkswagen had indicated plans to expand exports from China.
Volkswagen announced its shift to the “In China, Beyond China” strategy in Hefei.
Volkswagen delivered about 406,000 vehicles in China, 38.5 percent fewer than a year earlier.
- New strategy
- In China, Beyond China
- Planned export markets
- Southeast Asia, southern Africa and South America
- China market forecast for 2026
- Fewer than 19 million vehicles
- VW China deliveries, third quarter
- About 406,000 vehicles, down 38.5 percent year on year
- VW China market share goal
- 11 percent in the long term
2 sources
What people are saying
The overall market in China is in free fall.
We want to maintain our 11 percent market share in the long term.
China is no longer a growth machine. We are preparing for that.
China is not only exporting cars, but also competitive pressure.