Volkswagen has identified Australia as a key potential market for Chinese-made vehicles as the German automaker looks to expand exports and strengthen sales amid declining demand in several markets.
Volkswagen brand CEO Thomas Schäfer told Autocar that the company plans to export more vehicles manufactured in China to international markets, including Australia, the Middle East and parts of Southeast Asia. The strategy targets markets that can be served more easily from China than from Europe.
“We’re starting now to export to the Global South and countries that have easier access from China than Europe, such as Australia and the Middle East,” Schäfer said.
Volkswagen has not confirmed which models will be introduced in Australia or when they could arrive. The company manufactures vehicles in China through joint ventures with SAIC, FAW and JAC. These partnerships produce models for the Chinese market, including vehicles that are not currently available in Australia.
Volkswagen Australia has yet to announce any China-built additions to its local lineup. However, the brand previously sold Chinese-manufactured passenger cars in the country, including the Polo Classic sedan produced at Shanghai Volkswagen’s Anting plant, which launched in Australia in 2004.
Schäfer indicated that vehicles manufactured in China would likely complement Volkswagen’s existing models sourced from Europe rather than replace them.
The move comes as the automaker faces declining sales in Australia. Volkswagen sold 28,970 vehicles last year, down from a peak of 60,225 in 2015. According to the figures provided, sales fell 20.6% in 2025 following a 16.8% decline in 2024.
Chinese-made vehicles are also gaining ground in Australia. The supplied report said they accounted for 38.9% of new-vehicle sales in the previous month, exceeding the combined share of vehicles manufactured in Japan and Thailand. The growing presence of Chinese-built cars could create opportunities for Volkswagen as it seeks to broaden its range and reach more customers.
