Volkswagen sells China-made cars in Southeast Asia, helping partners scale export readiness
Until 2022, German car giant and its joint-venture partners are expected to invest US$18b in China on developing electric and self-driving vehicles, and other new-mobility services
Volkswagen, the world’s largest carmaker, plans to sell China-built vehicles in Southeast Asia, in a step that would help its Chinese partners FAW Car and SAIC Motor scale their capacity to export.
“We will look at where it makes sense to sell China-built cars, maybe because of price competition compared with cars out of Europe,” Volkswagen Group China’s President Jochem Heizmann said in an interview at the Beijing Auto Show.
“We have just started [this process]. Of course, the more we sell, the better. But we have to clarify the acceptance of these cars, and whether we could offer a good enough service.”
The export push, which started with the Philippines in January, was fully underway last month, after agreements between Volkswagen and FAW and SAIC. The 12-brand German automaker plans to deliver several thousand cars to customers in Southeast Asia in the years to come, Heizmann said.
Volkswagen was among the first global carmaker to assemble in China, establishing a venture with SAIC in Shanghai 33 years ago to produce the Santana, which quickly became the most popular model when car ownership took off in the country.