Volkswagen to export surplus stock from China to Middle East

Volkswagen is to start exporting cars from China, aiming to sell in other Asian markets, South America and the Middle East, its China chief Ralf Brandstaetter has said.

Brandstaetter also said that the carmaker was ready to tackle domestic competition in the country.

Carmakers in China, including Volkswagen, are grappling with how to make use of unused production capacity as annual demand has stagnated at around 22 million cars since 2019.

“It is fully clear that VW will not export to the US or Europe (from China) except for the Tavascan. But other markets are open, like Asian markets, South America and the Middle East,” Brandstaetter said, speaking at an event held ahead of the Shanghai auto show.

“They are open to products from China. We have competitive models and we are approaching exporting from China to these regions.”

In China, where foreign carmakers are losing market share to a swathe of domestic rivals, Volkswagen plans a new vehicle platform for both battery-electric cars and EVs equipped with so-called range extenders – a small combustion engine.

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“You can’t predict what the share of each type of EV will be in 2030. We need to adapt our platforms to provide this flexibility,” Brandstaetter said, adding that the ingredients for success in China included assisted driving capabilities, cost management and flexibility in drivetrains.

“There is no reason why Volkswagen can’t be as fast and as competitive as a Chinese startup with this approach,” he said.