Volkswagen considering selling Chinese-developed models in Europe - report

Volkswagen seems to seriously considering expanding its European range with some models initially designed specifically for the Chinese market.

Sources have told Handelsblatt (via Electrive) the Volkswagen Group is contemplating importing the ID. Era 9X, a large SUV developed with SAIC, the owner of the MG brand, to Europe.

The ID. Era 9X is an extended range electric vehicle (EREV) available in either 240kW rear-wheel drive, or 380kW all-wheel drive forms. Available with either a  51kWh or 65kWh battery pack, the 9X also has a 105kW 1.5-litre up front whose sole purpose is to recharge the batteries when they're feeling a little down. 

With production of the Volkswagen Touareg having ended earlier this year, the brand is without a large SUV. Bringing the ID. Era 9X to Europe would not only fill that gap, but also give the company an electrified SUV model above the ID. 4 and ID. 5.

Earlier this year Volkswagen CEO Oliver Blume said the company was exploring the idea of exporting developed-in-China models to outside markets, but was more cautious about bringing them to Europe, hinting analysis would focus on "segments where we are not present with our current portfolio in Europe”.

The automaker is also reportedly considering exporting an as-yet unseen model based on the company's new China Scalable Platform (CSP) that's set to debut in 2027.

Should either of these EREVs be exported to Europe, they would escape the EU's punitive tariff on pure EVs sent from China to the bloc, which can reach as high as 35.3 per cent on top of the standard 10 per cent levy.

This EV tariff, which was enacted in 2024, has forced Chinese automakers to pivot towards plug-in hybrids (PHEVs) and EREVs in the EU. Some are also considering or have already started producing EVs on the Continent.

A decision on the ID. Era 9X and the CSP model will likely hinge on whether the EU extends its additional tariff regime to Chinese made PHEVs and EREVs. Reports earlier this year suggested this was being considered.

In comments reported by Handelsblatt, Olaf Lies, Minister-President of Lower Saxony, said: "If we were to produce vehicles that we currently build in China here as well, we could stabilise plant utilisation. This would also bring new development and innovation opportunities to our sites."

The State of Lower has a roughly 20 per cent stake in Volkswagen, and is the automaker's second-largest single shareholder. A report last week claimed Volkswagen is considering closing four factories in Germany. Two of these, Emden and Hanover, are within Lower Saxony. 

Up until the last few years, China was Volkswagen's growth engine and a major profit centre. The market's rapid acceptance of local brands and their EVs has seen Volkswagen's Chinese division go from golden goose to problem child.

In order to regain lost ground, it has now adopted an 'In China, For China' policy with more China-specific models developed both internally and with the help of local partners, including SAIC and Xpeng.

Should the automaker decide to export any of China-developed models to Europe, they won't be first the made-in-China models to be sold by the Volkswagen Group on the Continent. The all-electric Cupra Tavascan is produced exclusively at the Volkswagen-JAC joint venture factory in Hefei.

The Tavascan was originally subject to 20.7 per cent surcharge tariff, but since the beginning of the year now only attracts the standard tariff as part of a minimum price agreement with the EU.

Whereas once Chinese automakers leaned heavily on their western partners for technology and platforms, the pendulum is now swinging the other way, with Mazda, Nissan, Ford and GM exporting cars based on architectures borrowed from their Chinese collaborators.

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