Volkswagen has secured a road test permit for Level 3 autonomous driving in Hefei, starting real-world road tests and data collection across the Anhui provincial capital.

The trial advances the German group toward its target of having conditional autonomous software ready for commercial passenger cars in 2027. Volkswagen China confirmed the permit on Monday, though it withheld the models involved, the route maps and the size of its test fleet.

Engineering work behind the Hefei testing runs through Carizon, the joint venture established in December 2023 between Volkswagen software division Cariad and Beijing-based Horizon Robotics. Volkswagen committed 2.4 billion euros to set up the unit and retains a 60 per cent controlling stake. Carizon pairs Horizon Robotics’ foundation models with proprietary silicon to build an automated driving stack specifically tuned for Chinese roads.

Hardware development focuses on the C7H system-on-chip, which remains in development alongside the GAIA world model data system. Carizon intends to run that combined platform across future production vehicles, targeting full software deployment and early customer deliveries in the second half of 2027.

Foreign automakers in China face severe margin pressure from local electric brands that already bundle automated highway pilot features into standard trims. To defend showroom footfall, Volkswagen must match the local software pace or risk seeing its volume market share erode further among tech-focused retail buyers. Chinese consumers treat intelligent cockpit functions and urban driving assistance as baseline requirements rather than optional luxury packages.

Domestic manufacturers hold the regulatory lead on conditional autonomy. The Ministry of Industry and Information Technology approved its first batch of road-use pilot vehicles in December 2025, clearing Changan Automobile’s Deepal SL03 and BAIC Group’s Arcfox Alpha S.

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