Volkswagen Group’s chief executive has asserted that rivalry from Chinese automobile manufacturers fosters innovation and advantages the worldwide car sector. In a discussion with a CGTN journalist on the fringes of the China International Import Expo in Shanghai, Oliver Blume emphasised the constructive role of the Chinese market in propelling advancements. As reported by CGTN, this competition is viewed as a beneficial force that enhances progress across the industry.
Blume elaborated that Volkswagen benefits from formidable adversaries and reliable collaborators within China, underscoring the nation’s significance as a pivotal arena for the company’s operations. He conveyed that the dynamic environment in China stimulates inventive solutions, contributing to broader enhancements in automotive technology and practices. According to CGTN, this perspective aligns with Volkswagen’s longstanding engagement in the market, where it has established joint ventures and invested heavily to maintain competitiveness.
The interview occurred during the eighth edition of the expo, which commenced on 5 November 2025 and attracted numerous global enterprises showcasing their offerings. Blume’s comments reflect Volkswagen’s strategy to navigate the fierce electric vehicle landscape in China, where local firms like BYD have surged ahead in sales and innovation. As noted by Reuters, Volkswagen reported a 1 per cent decline in deliveries in China for the third quarter of 2025, totalling 826,600 vehicles, amid intensifying price wars and shifting consumer preferences towards electrified models.
To counter these challenges, Volkswagen has accelerated its electrification efforts, planning to launch 30 new energy vehicles in China by 2030 through partnerships with local entities. Blume has previously highlighted the need for adaptation, including cost reductions and technological collaborations, to reclaim market share. According to Automotive News Europe, the company aims to cut administrative expenses by 20 per cent and reduce factory costs by a similar margin to bolster profitability in the region.
Blume’s optimism about Chinese competition echoes broader industry sentiments, where foreign automakers acknowledge the rapid pace of innovation driven by China’s EV boom. As detailed by Bloomberg, Volkswagen’s investments include a 700 million euro stake in XPeng to co-develop intelligent connected vehicles, demonstrating a commitment to leveraging local expertise. This approach not only addresses immediate market pressures but also positions the group to benefit from China’s advancements in battery technology and smart features.
The expo itself serves as a platform for such dialogues, with Blume’s participation underscoring Volkswagen’s dedication to the Chinese market, which accounts for about a third of its global sales. His remarks suggest a collaborative rather than adversarial view, potentially paving the way for further alliances amid global trade tensions. As reported by South China Morning Post, despite tariffs on Chinese EVs in Europe, Blume advocates for open markets to foster mutual growth. This balanced stance highlights the interdependent nature of the automotive ecosystem, where innovation in one region elevates standards worldwide.