Volkswagen is reportedly preparing to sell models developed in China for China in Australia, in a move that could reshape the brand’s local line-up. Volkswagen brand chief executive Thomas Schäfer was quoted at the Paris motor show saying the company is starting to export these cars to markets with easier access from China than Europe, naming Australia and the Middle East.
Volkswagen Group Australia has not announced any Chinese-built Volkswagen models, and no specific model, price or timing has been confirmed. For now the plan should be treated as reported rather than locked in.
What Volkswagen’s boss said
Schäfer reportedly said Volkswagen had cut material and engineering costs through its Chinese development program and now has vehicles that are completely cost-competitive in China. He added that the brand is getting ready to bring one or more of those vehicles to Europe as selected imports, and that they would add to the range rather than replace existing models.
Which models could come
Volkswagen builds China-specific models through its partnerships with SAIC, FAW and JAC, and plans more than 30 new electrified models in China by 2029. None has been confirmed for Australia, but three are seen as likely candidates.
| Model | Type | Powertrain | Reported range |
|---|---|---|---|
| ID. Era 9X | Three-row, 5.2-metre SUV | Range extender, up to 380kW and 660Nm | About 320km electric and 1,350km combined (Chinese cycle) |
| ID. Aura T6 | Five-seat medium SUV | Electric, 170kW and 345Nm, 77.5kWh LFP battery | About 540km (Chinese cycle) |
| ID. Unyx 07 | Electric liftback sedan | Electric, 170kW and 350Nm rear motor | About 550km (Chinese cycle) |
Schäfer singled out the large ID. Era as the kind of car Volkswagen would not develop for Europe because it is too big, which makes it a strong contender for a market like Australia, where large SUVs sell well. Range figures above use the Chinese test cycle and are expected to be lower under the WLTP standard used here.
Why Volkswagen needs a reset here
Volkswagen’s Australian sales peaked at 60,225 in 2015 and fell to 28,970 in 2025. Just 17,161 were delivered in the first nine months of 2026, down 23.2 per cent while the overall market grew. Battery electric cars have taken around 19 per cent of the market this year, and Chinese-built cars accounted for 38.9 per cent of new vehicle sales in September.
Volkswagen has added plug-in hybrid versions of the Volkswagen Tiguan and Tayron, and the ID. Tiguan is due in 2027 to replace the ID.4 and ID.5. But it still lacks a broad range of affordable electrified models to take on Chinese brands.
A full-circle moment
If the plan goes ahead it will not be Volkswagen’s first Chinese-made car here. In 2004 it introduced the Shanghai-built Polo Classic sedan, the first Chinese-made passenger car sold by an official distributor in Australia. Today the only China-built Volkswagen Group model sold locally is the Cupra Tavascan electric SUV.
Chinese-built imports could also face cost changes from 2027, as covered in our report on how Chinese EVs and PHEVs could cost 4 per cent more. Pricing for any Chinese-sourced Volkswagen is expected to reflect that.
