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Volkswagen widens exports of China-built models to Southeast and Central Asia

© A. Krivonosov
Volkswagen expands exports of China-built cars and EVs to Southeast and Central Asia, using its Hefei hub to cut costs and speed development; EU not included.
Michael Powers, Editor

Volkswagen has unveiled plans to broaden exports of vehicles developed and built in China to new overseas markets. The German manufacturer already ships Chinese-made sedans to the Middle East and is now eyeing Southeast and Central Asia as the next destinations, a logical move for a brand seeking additional scale.

According to Thomas Ulbrich, chief technology officer at VW Group China, the decision is being made jointly with the company’s headquarters in Germany, as each region requires a tailored model lineup. With Chinese plants producing both combustion-engine models and electric vehicles, Volkswagen can shape an export mix that fits local demand rather than forcing a one-size-fits-all approach.

The company stresses that Europe is not part of this plan. The electronic architecture and software of these intelligent vehicles differ from European Union requirements, and that mismatch keeps the lineup out of the EU for now—an illustration of how regulatory and software standards increasingly set the boundaries for global car programs.

Volkswagen is also ramping up its hub in Hefei, investing billions of euros to speed up development and local manufacturing. The company says it can now create new platforms and technologies entirely in China and do so at up to 50 percent lower cost than in other regions, thanks to the scale of the supplier base. Reading between the lines, the strategy aims to compress timelines and sharpen cost discipline, two levers that matter when competition is this intense.

VW adds that it plans to start selling outside China vehicles built on its new Chinese electronic architecture in the near future, though it is not yet sharing details. If executed as hinted, this will show how far the China-developed tech stack can travel beyond its home market.