Pressure on margins is forcing a review of old dogmas, and at Volkswagen, this process is becoming increasingly evident. The German auto giant announced the possibility of starting sales of cars produced in China on the European market. It is possible that some models may even be assembled in Germany later on. Undoubtedly, this will cause controversy, but it could be key to saving a business that is currently barely staying afloat with a margin of only 4.3%.
Why Volkswagen is considering Chinese production for Europe
Like many other traditional brands, Volkswagen is facing difficulties competing with new rivals in China. At the same time, the company is forced to overcome international tariffs and the problem of global overcapacity. Recently, the concern confirmed that it will reduce total global capacity by another 1 million units, bringing it to approximately 11 million. Where exactly these cuts will occur has not yet been specified.
CEO Statement
During a recent conference call with investors and analysts, CEO Oliver Blume noted that the company expects increased competition from Chinese brands in the coming years. This could push VW to sell Chinese-made cars in Europe.
“We will check which of our own Chinese products might be suitable for the European market, especially in segments where we are not currently present,” Blume said.
He added that any such step would depend on tariffs, logistics costs, and other factors, so a final decision has not yet been made.
Priority — other regions
“We will decide, depending on the success in China, which model will be suitable for Europe, especially in segments where we are not represented with our current portfolio. Step by step. It is too early now; we have not yet launched the process and have not made a decision,” Blume added.
Later in the conversation, Blume emphasized that the company primarily plans to sell cars produced in China in the markets of the Asia-Pacific region, the Middle East, India, South America, and Africa. Europe, he said, is “possibly a step for the coming years, but a decision has not yet been made.”
New models from China
Recently, Volkswagen introduced the ID. Aura T6 SUV, developed and produced jointly with partner FAW, as well as the ID. Unyx 09 sedan, created in collaboration with Xpeng at the Beijing Auto Show. Such models could be in demand in Europe due to their powerful technologies and competitive electric vehicle characteristics.
VW ID. Era 9X
This news signals a radical shift in Volkswagen’s strategy, which for decades exported European cars to China. Now the company is considering the reverse path, highlighting how much the global automotive market has changed. Chinese manufacturers such as BYD and Xpeng are rapidly building technological advantages and reducing costs, forcing traditional giants to adapt. If VW succeeds in establishing imports of Chinese models to Europe, it could lead to lower prices for consumers, but it will also create additional pressure on European factories and jobs. The final decision will depend on political and economic factors, including future trade agreements between the EU and China.