KATHMANDU: Volkswagen Group plans to introduce technologies developed in China in overseas markets as the German automaker changes its strategy to strengthen its global competitiveness.
The company’s Compact Main Platform with China Electric Architecture, developed at its research and development center in Hefei, China, will support its next-generation models for emerging markets. South America is expected to be the first region to receive these models by the end of the decade.
The move marks a shift from Volkswagen’s earlier “in China, for China” strategy, under which it focused on developing products specifically for the Chinese market with local partners such as Xpeng.
Volkswagen is now looking to turn its Chinese operations into a cost-efficient development and export hub. The company also plans to increase exports of China-built vehicles to markets in South America and Africa.
The strategy comes as traditional automakers face growing pressure from Chinese brands such as BYD and Geely, particularly in electric vehicles, software and pricing. Volkswagen believes its China-based development process could reduce vehicle development time by up to 30%.
Its partnership with Xpeng on China Electric Architecture is also expected to support software-defined vehicles across different platforms and powertrains.
Apart from South America and Africa, Volkswagen has identified Southeast Asia as another potential market for China-developed models. However, the company has ruled out Europe and North America for now.
The strategy reflects a broader shift in the global automotive industry, as manufacturers look beyond China’s increasingly competitive domestic market for growth opportunities. Whether Volkswagen can attract buyers in overseas markets with these models on factors beyond pricing remains to be seen, writes Reuters.
