29/01/2026
Volkswagen plans to use lower production costs in China to export more vehicles from Chinese factories to Southeast Asia, the Middle East and South America, rather than to Europe, according to company leaders. Chinese-made models are now positioned for markets where pricing competition and demand dynamics offer better margins, even as the brand has been overtaken by local rivals like BYD and Geely in China’s domestic market.
VW CEO Oliver Blume noted that while the company has made progress, price war conditions and competitive pressure mean export flows must adapt. Chinese market pricing has stabilized at current levels, and future exports will focus on regions with stronger demand for competitively priced vehicles.
For importers across Asia and the Middle East, this means increased inbound supply of competitively priced Chinese-built Volkswagen vehicles, which may affect vehicle pricing and sourcing strategies in those markets.
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