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Volkswagen CEO on ‘In China, for China’: An Exclusive Look at Strategy

The future of mobility is being written this week at the Beijing Auto Show 2026, where Chinese electric vehicle brands are setting a pace that has the global automotive industry in a state of accelerated evolution. Against this backdrop of intense competition and innovation, one of the world's legacy automakers is placing a monumental bet on the market's future.

In an exclusive interview with CGTN's Li Mengyuan, Thomas Schaefer, the global CEO of Volkswagen Passenger Cars Brand, laid out why the German giant is going "all in" with its "In China, for China" strategy. The discussion revealed a company in transformation, seeking to blend its renowned engineering precision with the breakneck development speed that defines the Chinese automotive landscape today.

"The energy here is unlike anywhere else," Schaefer remarked from the show floor. "Chinese consumers are not just adopting new technology; they are defining what the next generation of mobility looks like. To succeed, you must be here, learning and creating at their pace."

This philosophy is at the core of Volkswagen's localized strategy, which involves deep partnerships with Chinese tech firms and a significant increase in local research and development. The goal is to move beyond simply selling cars designed elsewhere to co-creating vehicles that resonate specifically with the preferences and digital lifestyles of consumers in the Chinese mainland.

A key battleground is artificial intelligence. Schaefer highlighted AI's role not just in autonomous driving, but in creating a more intuitive, personalized user experience within the vehicle—a feature highly prized by tech-savvy Chinese customers. "AI is the new horsepower," he said. "It's about creating a car that understands you, anticipates your needs, and integrates seamlessly into your digital ecosystem. That's the expectation now."

For business professionals and investors watching Asia's economic currents, Volkswagen's commitment underscores the market's undeniable strategic weight. The company's approach reflects a broader trend where global automakers are shifting from export-oriented models to integrated, innovation-led operations within China.

Schaefer acknowledged the formidable competition from domestic EV makers but framed it as a catalyst for excellence. "This competition drives us to be better, faster, and more creative. It's raising the bar for everyone, and ultimately, the customer wins," he stated.

The interview concluded with a forward-looking perspective on sustainability and software-defined vehicles, pointing to 2026 as a pivotal year where concepts become commercial realities. For Volkswagen, its future is being engineered, quite literally, in China.

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