Volkswagen plans to globalise China-developed technology in strategy shift
Volkswagen plans to bring China-developed vehicle technology to overseas markets, with rollout in South America beginning by the end of the decade. Its VEGA package, featuring 850-volt fast charging and Level 3 autonomous-driving readiness, is slated for launch in 2027.
1. Technology for overseas markets
Volkswagen said its Compact Main Platform with China Electronic Architecture, developed in Hefei with Chinese firms, will feature in next-generation models targeting Global South markets. The rollout is set to begin in South America by the end of the decade. The company also plans to ship more China-built Volkswagen and Jetta cars to South America and Africa in coming years.
2. Shift in China strategy
The plan marks a shift from Volkswagen’s “In China, for China” localisation strategy. CEO Oliver Blume called China “a key innovation engine for the Volkswagen Group” and said it was increasingly a product and technology hub for global markets. Volkswagen also unveiled VEGA, a package with 850-volt fast charging and Level 3 autonomous-driving readiness, slated for a 2027 launch.
3. China market pressures
Volkswagen is seeking to revive sales in China, where domestic automakers have outpaced foreign rivals in electric vehicles, software and price competition. China chief Ralf Brandstatter expects the country’s passenger-car market to shrink by 20% this year, or about 4.5 million vehicles. Volkswagen has identified Southeast Asia, Latin America and Africa as possible destinations for China-developed models, while ruling out Europe and North America for now.
