According to the British automotive magazine website Autocar, reported on October 17 local time, Thomas Schaeffer, CEO of German automaker Volkswagen, revealed that the company has begun exporting cars developed in China to overseas markets, including Australia and the Middle East. These models have significantly reduced costs due to Volkswagen's operations in China.
According to reports, Volkswagen has a series of models developed specifically for the Chinese market. At the Paris Auto Show, Dr. Herbert Diess stated that over the past two years, Volkswagen has completely re-engineered its development processes through cooperation with local Chinese automakers, and significantly reduced material and engineering costs. As a result, these exclusive models are “cost-competitive across all Chinese markets” in terms of price and technology. Based on this, Volkswagen has officially launched export plans to Australia, the Middle East, and other global markets.
A Volkswagen dealership in the center of Sydney
Schefer told Autocar: “Our advantage in China is that, over the past two years, we have been working hard to reduce the cost of vehicles—including material costs and engineering costs.”
"We have completely redesigned the vehicles, and worked with partners here in Europe and there in China. The vehicles we have created are completely cost-competitive in the Chinese market."
Xief continued, "We have been working closely with Chinese colleagues, fully understanding every step of the process, and conducting simultaneous research and development on our vehicles. However, at present, we have not yet applied these achievements in terms of export or technology."
"Now, we begin exporting towards countries in the Southern Hemisphere and those from Europe with easier entry, such as Australia and the Middle East. " He added.
According to him, the launch of Volkswagen China models in Australia will be a pilot test. After that, some models sold only in China may be introduced to Europe as a supplement to Volkswagen's existing product lineup.
Previously, Volkswagen also stated that some of its Chinese models might be sold or even produced in Europe in the future. When asked about this plan, Schaeffer said: "Looking ahead, we are preparing to introduce one or more models from China."
"You know, there are some exciting models that we may not develop specifically for the European market, such as those with overly large sizes. However, we might import them selectively to see how they perform. This is not intended to replace any existing models."
Australian authoritative automotive media outlet “Carsales” pointed out that it is still unclear which specific models of Volkswagen's Chinese products will be sold in Australia, their launch dates, or prices. However, for a famous brand whose local sales have been halved over the past 11 years, its strategic significance could be “very significant”.
In 2020, no Chinese brand made it into the top ten annual sales list in Australia. The tenth place was occupied by Mercedes-Benz, while the top five positions were all taken by Japanese brands and two Korean brands. Additionally, American Ford and German Volkswagen each had one spot in the top five.
However, as of August this year, Volkswagen's market share in Australia has fallen below 2%, trailing behind Chinese brands such as BYD, Chery, Geely, Great Wall, and MG.
Due to continuous declines in sales, local Australian car dealers are casting their votes with their feet. According to Australian car media Drive, several iconic Volkswagen showrooms in key cities such as Melbourne and Sydney have closed over the past year. The retail networks that previously sold Volkswagen vehicles are gradually changing their brands, transforming into showrooms for Chinese brands such as BYD and MG.
Local residents described this change on social media as “the end of an era”. Some even suggested that European car brands may “either become history or be owned by the Chinese in the future”.
