Volkswagen plans to use cost advantages at its Chinese production base to expand exports of China-made vehicles to international markets - explicitly excluding Europe - company executives said.
Ralf Brandstaetter, who leads Volkswagen's China operations, told reporters that models produced in China could be destined for markets such as South-East Asia, the Middle East or South America. "We do not plan to export to Europe," he said on Tuesday evening.
The strategy reflects Volkswagen's intent to capitalise on lower manufacturing costs in China as a lever to serve demand in regions outside Europe. Brandstaetter also commented on local pricing dynamics, saying: "Prices have now reached a level at which we assume they will not fall any further. But prices will not rise again either." He added that, over the long run, Volkswagen aims to remain among the three largest carmakers in China.
Volkswagen's chief executive, Oliver Blume, acknowledged progress at the firm over the past three years and said models are performing well. At the same time, he warned that the industry remains challenging and signalled that additional cost reductions will be required. "We need to roll up our sleeves," Blume said. "We simply have to earn more money so that we are even better equipped to invest in the future."
The comments come against a backdrop of weakening position for Volkswagen in China, the world's biggest car market, where the automaker has fallen in the rankings after being overtaken by local competitors BYD and Geely. Blume faces pressure to stop the slide in sales in China, where Volkswagen is described as lagging on electric vehicles and engaged in a price war with domestic rivals.
The company’s stated export focus for China-made cars - directed at South-East Asia, the Middle East and South America - underlines an approach that seeks to capture demand in regions where Chinese-built models can compete on cost, while keeping European markets out of the intended export flow.
Context limitations: The company statements quoted are limited to the comments made by Volkswagen executives about export plans, pricing expectations, competitive position in China and the need for further cost cuts. No additional markets or timelines were specified by the executives.