Volkswagen adapts its strategy in China as it faces tougher competition

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, a move aimed at better competing with local rivals. The company also plans to launch 30 new models and is looking to use its Chinese factories to export cars to other parts of Asia and the Middle East.

Despite delivering 2.69 million cars in China in 2025, Volkswagen's position in the market is shifting. It has been overtaken by the fast-growing Chinese automaker Geely Auto, dropping to third place in sales in the country.