Volkswagen, one of the largest car manufacturers in the world, is exploring new opportunities by looking towards China for the production of its upcoming global vehicles. According to reports from UK-based publication Autocar, the company’s CEO, Oliver Blume, has indicated that some of the models currently exclusive to the Chinese market could be exported to Europe and other regions such as Asia, South America, the Middle East, and even Australia.
Australia has become a key focus for electric vehicle (EV) development due to the Federal Government’s New Vehicle Efficiency Standard (NVES). This initiative is expected to drive demand for more sustainable transportation options, making it an attractive market for Volkswagen’s future EVs.
New Models and Competitors
Several new models are being developed with the potential to compete with established EV brands in the region. These include:
- The 2026 Volkswagen ID.Era 9X, which has been revealed in China and is positioned as a rival to the Zeekr 9X, BYD Tang 9, and Leapmotor D16.
- The 2026 Volkswagen ID. Polo, a new electric car that aims to challenge the Zeekr X, Renault Megane E-Tech, and MG4 EVs.
- The 2027 Volkswagen ID.3 Neo, showcasing a new design direction to better compete with the Zeekr X and Renault Megane E-Tech.
Strategic Advantages of Manufacturing in China
Producing vehicles in China for the Australian market could offer several advantages. These include cost reductions due to a free-trade agreement between Australia and China, the benefits of large-scale manufacturing, and lower shipping costs because of the geographical proximity.
Volkswagen has established several partnerships with Chinese brands that could be leveraged in this strategy. The most notable of these are joint ventures with SAIC, which owns MG, and XPeng. These collaborations provide access to local expertise and technology that could support the development of new models.
Platform Development and Future Plans
Blume mentioned that while it is still early to decide whether to localize a Chinese platform in Germany, the company would prioritize using its own platforms first. He highlighted that the CMP platform, which is co-developed with XPeng, will be ramped up this year and is planned for 2027 in China.
“This work has to be done first, and then we could think about options in Europe and check which products could be the right ones,” Blume said.
The CMP platform is set to spawn a number of vehicles, including the giant ID.ERA 9X SUV, which was recently unveiled in China. This model could also benefit from SAIC’s developments.
“We are getting right now the feedback and response from the market for our first new product in China. Then we will decide, depending on the success we have in China, which models would fit in Europe, especially in segments where we are not present with our current portfolio in Europe,” Blume added.
Volkswagen is not the only automaker considering the export of China-built vehicles to global markets. Nissan has shown enthusiasm for exporting its vehicles developed in collaboration with Dongfeng, with Australia expected to receive several models in the coming years. Similarly, Toyota is exploring the possibility of sending some of its China-only vehicles to other markets.
This trend highlights the growing importance of China as a hub for automotive innovation and production, with global automakers seeking to leverage its capabilities to meet the demands of international markets.
