7:05 am, June 1, 2026
Volkswagen executive Thomas Schafer believes his firm’s new electric models are enough to battle the Chinese newcomers.
The chief executive of VW passenger cars recognises the threat coming from the Far East, but believes the German firm’s new wave of EVs will help it compete.
The firm is investing €160bn over the next five years in its electric products and has already announced a host of new cars that VW hopes will help it compete with the Chinese.
VW will soon launch the ID Polo EV which will come in a GTI variant for the first time which will help lead a product offensive of small EVs to challenge the new entrants.
Speaking to The Sunday Times, Schafer (pictured) said he thinks people are ‘underestimating’ the ability of European car manufacturers to fight back.
In the UK, Chinese car makers are on course for a record 20% market share in 2026 with new car sales overall predicted to remain static in growth compared to last year.
Those Chinese sales are coming at the direct expense to established car makers with the likes of BYD and Jaecoo – which sold the best selling car this March – attracting customers at record rates.
Schafer said: ‘We’re not going to lie down and start crying. You have to face new competition.’
He said he believes the EU is ‘very much’ over regulated and that making it hard for homegrown manufacturers to challenge the Chinese newcomers.
‘China has got a clear industry strategy, as has the US, but Europe is burdensome,’ he said.
‘There are tons of regulations, from deforestation rules to supply chain laws.’
Last year, global sales for VW dropped from 5.3m in 2020 to 4.7m. The group – which comprises VW, Audi, Skoda, Seat, Cupra, Lamborghini and Bentley – is also scaling back production from 11m cars in 2018 to around 9m. Tariffs in the US have seriously damaged its ambitions.
‘The world around us has changed,’ Schafer told the paper.
However, the VW exec said he believes the firm’s ‘higher quality’ vehicles will stand out against Chinese competition. VW still has a 27% share of Europe’s electric car market.
He added: ‘You’ve got to do it to defend your territory.
‘When you drive the ID.Polo GTI, you’ll understand.’
