Volkswagen plans to ship more China-built vehicles abroad to offset domestic pressures and exploit lower manufacturing costs.
The German group has already started exporting cars from China to the Middle East and Southeast Asia, and is weighing sales of newly developed Chinese models in Africa and South America, chief executive Oliver Blume told Bloomberg.
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The move comes as the company reorganises its Chinese operations to better compete with domestic electric vehicle producers led by BYD, including relocating more research and development work locally and forming a software partnership with Xpeng.
Volkswagen intends to roll out 20 new electrified models in China this year as it seeks to recover from a slump that cut deliveries to about 2.7 million last year, down from more than four million before the pandemic.
The downturn has hit Porsche particularly hard, with sales sliding sharply amid softer demand for luxury cars.
Porsche manufactures solely in Europe and has encountered trade obstacles in both the US and China, while Volkswagen is prioritising a new electronics architecture created with Xpeng to match local customer tastes.
Production has begun on the first model using the platform, although the company has not revealed pricing for the ID. UNYX 07 electric sedan due to reach customers later this year.
Alongside its China strategy, the group is restructuring more broadly in response to subdued demand there, US tariffs and uneven European sales, including reducing its workforce and expanding its hybrid range.
According to the report, Volkswagen expects 2026 to serve as a transition year in China, aiming to grow electrified vehicle sales without necessarily increasing overall volumes.
The company also seeks to remain among the country’s three largest carmakers and raise its market share to 15% by 2030, up from about 11%.
Earlier this month, Volkswagen Group’s Brand Group Core announced a major restructuring plan that will streamline management layers and integrate production and development functions across its high-volume brands.
The carmaker said changes to production alone are expected to generate cumulative savings of €1bn ($1.16bn) by 2030.
