Volkswagen is intensifying efforts to curb gray market activity that moves cars from China toward Russia, according to a report in the German newspaper Handelsblatt. The coverage outlines how some trading routes previously used for shipping used vehicles have evolved to handle new car orders as global tensions and sanctions evolve. A Volkswagen spokesperson based in Beijing confirmed that the company maintains a blacklist of dealers potentially involved in such trading schemes, and indicated that shipments to these buyers would be halted.
The report notes that Volkswagen does not have direct control over independent Chinese dealers and cannot bar them from selling vehicles to other destinations. It is highlighted that Volkswagen operates in China through joint ventures with local automakers, and the influence the German parent company wields over these partners is comparatively limited. The sources quoted by Handelsblatt stressed that Volkswagen China manufactures vehicles primarily for the domestic market and the company adheres to Chinese regulatory and market conditions.
Since March 2022, Volkswagen has suspended car deliveries to Russia and halted local assembly. At the same time, reports indicate that several Russian dealerships began receiving orders for new Volkswagen ID.6 X electric crossovers sourced from China, with continued shipments highlighting a persistent demand and a complex logistics framework across borders. The development underscores the challenge of preventing legitimate cross-border trade while enforcing sanctions and company policies. A broader context shows how gray channels adapt to evolving political and regulatory environments, affecting supply chains, dealer networks, and branding strategies in major markets.
Industry observers point to several factors driving these dynamics, including the need for compliance with international sanctions, the desire to protect authorized dealer networks, and the risk of reputational damage for brands that appear to tolerate illicit routes. Volkswagen reiterates its commitment to lawful trade practices and emphasizes its responsibility to monitor and intervene when dealers engage in activities that circumvent controls. The situation also illustrates the delicate balance multinational automakers must strike between operating in a large, rapidly growing market and upholding stringent export controls that limit sales to sanctioned regions.
Analysts suggest that the evolving scenario will likely prompt closer scrutiny of cross-border supply chains, with higher incentives for transparency and traceability in vehicle provenance. For the German company, the priority remains safeguarding its official networks and ensuring that all transactions align with international regulations, local laws, and corporate standards. The case highlights how strategic decisions at the corporate level ripple through joint ventures, distribution channels, and regional markets, shaping the future posture of automakers in a highly scrutinized global landscape.