Volkswagen announced a push to ship more China‑built electric models to the southern hemisphere, targeting markets in Southeast Asia, Latin America and Africa. CEO Oliver Blume said the move leverages lower production costs and locally developed technology, while excluding Europe and the United States. The strategy follows a slowdown in domestic sales that left the German group with excess capacity.

The automaker aims to roll out 50 plug‑in hybrid and EV variants in China by 2030, part of its “in China for China” plan that includes joint development with Xpeng and state‑owned SAIC. Recent data showed Volkswagen reclaimed the top spot in China with a 13% share in Q1 2026, after subsidies for rivals faded and petrol‑car demand briefly revived.

Operating profit in the Chinese unit fell 45% to €958 million last year, while industry capacity sits near 45‑50 million units against 23.9 million sales. Chinese exporters shipped 7.1 million cars in 2025, a sharp rise from pre‑pandemic levels, prompting foreign makers like Volkswagen to use exports as a release valve for overcapacity and to stay price‑competitive globally.