Autobauer in Fernost: Blick auf neue Märkte - Volkswagen ändert China-Strategie

Volkswagen is altering its China strategy due to a weakening market and increased competition from other countries. The company now aims to expand beyond China, with a new motto of "In China, Beyond China." This strategic shift positions China as a key innovation and export hub for the global business. Volkswagen intends to serve more markets in Southeast Asia, southern Africa, and South America through its joint ventures in China.

Currently exporting vehicles to regions like the Middle East and Kazakhstan, the company plans to leverage Chinese-developed technology for vehicles destined for the global South. By 2020, VW hopes that South America will be the first region to incorporate technologies developed in China into its local portfolio. In the past nine months of this year, China's passenger car market saw a decline of 21.7 percent.

As a result, manufacturers are exporting to Europe and other less prominent global South markets. Chinese automotive sales dropped by 38.5 percent in the third quarter, accounting for more than 80 percent of the overall decline. Volkswagen aims to withstand competition from Chinese brands in Europe by exporting European-made products.

The company's China operations benefit from lower development costs and shorter time-to-market in China. In Hebei, Volkswagen's R&D center unveiled the Vega, a technology system designed to develop, integrate, and scale advanced technologies quickly and cost-effectively. Vega comprises the vehicle's electronic architecture, platform, and driver assistance systems.

According to Ralf Brandstätter, the China chief, Vega will bolster competition within the local market and open new business opportunities beyond China. Volkswagen's CEO, Oliver Blume, called China the "innovation engine" and an increasingly important "product and technology center for our global markets." Just a day prior, German President Frank-Walter Steinmeier visited Hebei during his ongoing China trip.