Volkswagen to import Chinese models to Australia

Volkswagen’s global chief executive officer Thomas Schäfer has today directly identified Australia as a locked-in destination for VW models developed in China, raising the prospect of a fundamental shake-up of its local model range.

Speaking to Britain’s Autocar at the Paris Motor Show, Schäfer said the company was beginning exports to markets including “Australia and the Middle East” using vehicles engineered at substantially lower cost through its Chinese operations.

The Australian launch of Chinese Volkswagens is understood to be a pilot test before certain Chinese models are added to VW’s European showrooms.

No specific models, launch dates or prices are yet known but the significance could be enormous for a famous brand whose local sales have more than halved in 11 years.

The iconic German brand is also looking down the barrel of significant job cuts globally as it looks for ways to cut costs.

Volkswagen sold 28,970 vehicles here in 2025, down 52 percent from its record of 60,225 sales in 2015, when the Golf alone found more than 22,000 buyers.

A new range built around competitively priced and sophisticated Chinese-market vehicles could be the spark Volkswagen needs in Australia.

Volkswagen’s range of models in China looks very different to that currently on sale in Germany and Australia.

Familiar models like the Golf, T-Roc and Tiguan are all marginal in China, where Volkswagen has developed a unique line-up of models across three partnerships with SAIC, FAW, and JAC.

“We’ve set up vehicles that are completely cost-competitive in the Chinese market… 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 told Autocar.

VW is releasing 13 new electrified models in China this year, spanning EVs, PHEVs and range-extender hybrids.

The immediate question is which would make sense in Australia.

The ID Aura T6 is a compelling possibility as a large electric family SUV with five seats, a 170kW rear motor and about 540km of electric range.

It also presents a fascinating choice for Australian product planners. After Volkswagen revealed the ID. Tiguan as a replacement for the ID. 4 and ID. 5 last week, the Australian arm would not confirm that it was bound for our market.

A more affordable Chinese-market Volkswagen SUV could be the preference instead.

Another potential candidate is the VW ID. Unyx 08, a five-metre electric SUV with 800-volt charging co-developed with XPeng.

China could also give Volkswagen the opportunity to reintroduce a sedan to local showrooms. With the Passat now long gone in Australia, the Chinese VW Unyx 07 EV, or Era 5S PHEV, are both low-slung options.

At the upper end of the Chinese Volkswagen range, the 5.2-metre six-seat ID Era 9X is a petrol-electric range extender hybrid. Its three-row size would suit the large family SUV segment, though right-hand drive production is not confirmed.

China’s influence could even extend to the Amarok, which would raise a few eyebrows.

Volkswagen Commercial Vehicles chief executive Stefan Mecha confirmed to carsales earlier this year that the brand is weighing Chinese pick-up options as a possible base for the next-gen Amarok, alongside a more likely plan to stick with Ford.

Volkswagen Group Australia has been contacted for comment and we’ll update this story when we have the local angle.

Schäfer told Autocar that Chinese vehicles would supplement, rather than replace Volkswagen’s European line-up, and the same could be true for Australia.

What is becoming clear is that Volkswagen Group Australia will be given a far broader choice of vehicles to import to this market in future, including European and Chinese models.

It also raises the question of whether cheaper Chinese-developed Volkswagens could ultimately become the backbone of the Australian range while European models turn into specialist or enthusiast offerings – such as the Golf GTI et al.

Further still, the prospect for Audi bring its China-specific ‘AUDI’ models to Australia becomes more likely following the VW move.

Audi sales are down just over 20% thus far in 2026 and given the inherent badge value of the German brand, more affordable luxury cars could find favour.