Volkswagen adapts its strategy in China as competition intensifies

Volkswagen is making significant changes to its operations in China, a crucial market for the company. It has delivered its first locally developed electronic architecture for cars there, which is a major technical step, and plans to launch 30 new models to try and win back market share.

Despite delivering 2.69 million cars in China in 2025, Volkswagen has fallen to third place in sales. It was overtaken by the fast-growing Chinese automaker Geely Auto. In response, Volkswagen is also looking to export cars built in China to other markets in Asia and the Middle East.