The leader of German carmaker Volkswagen has verified that Chinese-produced models will soon arrive in Australian showrooms as the company seeks to recover from weak sales performance worldwide.

During discussions with British publication Autocar at the recent Paris motor show, Volkswagen brand CEO Thomas Schäfer noted the firm intends to ship additional vehicles built in China to regions such as Europe and Southeast Asia.

Although Volkswagen Group CEO Oliver Blume had earlier indicated openness to global sales of Chinese-made cars, Mr Schäfer specifically highlighted Australia as one of the destinations for these imports.

"We are beginning exports now to the global south and nations with simpler logistics from China than Europe, including Australia and the Middle East," Mr Schäfer stated.

"Looking ahead, we are preparing to introduce one or more vehicles sourced from China."

The executive did not detail which specific models would arrive locally or if they would derive from the brand's China-focused range.

Volkswagen manufactures cars in China via joint ventures with SAIC, FAW and JAC. SAIC, owner of MG Motor, produces China-oriented Volkswagens such as the ID. Era 9X, a 5.2-metre six-seat SUV featuring an extended-range electric powertrain launched in January.

Volkswagen Australia has not yet confirmed any Chinese-built additions to its local range.

The German marque became the first official distributor to offer a Chinese-made passenger vehicle in Australia when it launched Polo Classic sedans assembled by Shanghai Volkswagen near Shanghai in 2004.

Volkswagen initiated talks on Chinese production in 1978, with the first locally built Santana emerging in 1983. Its operations now include 13 vehicle assembly plants and 21 component facilities across China.

The brand aims to launch over 30 new electrified models in the region by 2029, covering battery-electric, plug-in hybrid and range-extender options.

Current Chinese production includes local variants of the Golf, Passat, Tiguan and Tayron, plus China-specific models such as ID. Era, ID. Aura, Lavida, Lamando, Talagon and Tavendor.

Volkswagen held the top-selling position in China from 1986 until 2022, when BYD claimed the lead in 2023.

Mr Schäfer indicated Chinese-made models would likely complement the existing European lineup. European passenger cars are mainly assembled in Germany, Spain, Portugal and Slovakia, though the petrol Polo hatch originates from South Africa.

"There are some compelling vehicles we would not develop for Europe due to their size, such as the ID. Era SUV," Mr Schäfer explained. "Yet we could pursue selective imports to test the approach without displacing current models."

These remarks follow a broad Volkswagen Group restructuring involving around 100,000 job reductions and the closure of vehicle production at several German sites to streamline its model range.

Output at the Dresden factory concluded in December 2025, with Osnabrück set to follow in 2027. The Group has also noted it cannot yet secure competitive alternatives for four additional German plants whose products end between 2031 and 2034.

"A key advantage of our China operations is the cost reduction achieved in vehicles over the past two years, covering both materials and engineering," Mr Schäfer added. "We have completely re-engineered the cars with partners in Europe and China to ensure full competitiveness in the Chinese market."

In Australia, Volkswagen sales have dropped from a high of 60,225 in 2015 to 28,970 last year. The 2025 figure marked a 20.6 per cent annual decline after a 16.8 per cent fall in 2024.

Chinese-made vehicles represented 38.9 per cent of Australian new-vehicle sales last month, exceeding combined volumes from Japan and Thailand.

Chinese-built models from non-Chinese brands include the Tesla Model Y SUV plus offerings from Mazda, Cupra, Hyundai and Volvo. Ford will add the Transit City electric van in November 2026.

Australia's leading brand Toyota has not excluded the possibility of importing Chinese-made vehicles.

Toyota's market share has declined by roughly 3.4 percentage points to 16.0 per cent in the first nine months of 2026 versus the prior year, amid rising competition and margin pressures.