Volkswagen L3 Autonomous Driving Tests Begin in Hefei, China

Volkswagen Begins L3 Autonomous Driving Road Tests in Hefei

Volkswagen has obtained a road test permit for Level 3 (L3) conditional autonomous driving in Hefei, Anhui province, and has started testing the technology on public roads while collecting real-world data. The authorization represents a step forward in the German automaker's efforts to develop and deploy advanced driving automation in China. According to Volkswagen China, the milestone also supports the group's objective of achieving L3 autonomous driving technology readiness in 2027. The company has not disclosed which vehicle models are covered by the permit, which routes will be used, or how many vehicles are included in the testing fleet. Those details remain unconfirmed as real-world trials begin.

Volkswagen's China Autonomous Driving Timeline

The Hefei road testing program builds on Volkswagen's previously announced development schedule for automated driving in China. On April 11, Frank Han, executive vice president of Volkswagen Group China and CEO of Cariad China, told a forum in Beijing that the company planned to achieve L3 conditional autonomous driving in 2027 and L4 autonomous driving in 2029. The two milestones represent different stages of automation, with the company's stated roadmap extending beyond conditional automation toward a higher level of driving capability. The new permit provides an opportunity to gather real-world test data, although it does not establish that the technology has completed development or received authorization for unrestricted commercial use.

Hefei Technology Day to Showcase Volkswagen's Advances

Volkswagen China has also announced plans to hold its first Technology Day in Hefei on Wednesday, October 28, 2026. The event is intended to showcase the company's latest technological advances and comes as its L3 road testing activity gets underway in the city. The announcement establishes a near-term opportunity for Volkswagen to present its technology development efforts, but the available information does not confirm which autonomous driving systems, vehicles, or demonstrations will feature at the event. The company has not publicly identified the models covered by the road test permit, so the precise relationship between the testing fleet and any Technology Day demonstrations remains unclear.

Carizon Partnership Supports AI Driving Development

Volkswagen is pursuing its autonomous driving ambitions in China through cooperation with Horizon Robotics. On July 22, the two companies announced plans to deepen their collaboration on AI foundation models through their joint venture, Carizon. The partnership is intended to support the development of a unified AI driving solution for Volkswagen Group vehicles in China. Under the previously outlined schedule, deliveries of vehicles equipped with Volkswagen's L3 autonomous driving capabilities were expected to begin as early as the second half of 2027. That timeline remains a stated plan rather than confirmation of completed commercialization, and the newly announced road testing activity does not by itself establish that production vehicles are ready for delivery.

Carizon's Investment, Technology and Ownership Structure

Carizon was established in December 2023 by Volkswagen's software subsidiary Cariad and Horizon Robotics, with its headquarters in Beijing. Volkswagen invested approximately €2.4 billion in the joint venture and holds a 60% stake. The collaboration is expected to combine Horizon Robotics' AI foundation model with the C7H system-on-chip, which was under development, and the GAIA world model data platform. These technologies are intended to support the deployment of L3 and L4 autonomous driving capabilities. The source information does not establish that the C7H chip or the complete unified driving solution has reached production readiness. Their development therefore remains an important part of the broader technology program.

China Advances Conditional Autonomous Driving Approvals

China is gradually expanding the regulatory pathway for conditional autonomous driving in passenger vehicles. In December 2025, the Ministry of Industry and Information Technology granted its first L3 conditional autonomous driving product approvals for regular passenger cars. The approved models were the Deepal SL03 from Changan Automobile and the Arcfox Alpha S from BAIC Group. These approvals marked an important step in the country's efforts to move L3 technology toward controlled road-use applications. Volkswagen's permit in Hefei comes within this broader development, but the authorization is specifically for road testing and should not be interpreted as a product approval or evidence that Volkswagen vehicles have already been cleared for comparable road-use pilots.

Second Batch of L3 Product Approval Pilots

China's regulatory activity continued in October 2026, when a Ministry of Industry and Information Technology official said on October 22 that work was underway on a second batch of L3 product approval pilots. The official did not identify the automakers or vehicle models involved. The development indicates that the approval process is continuing beyond the initial passenger vehicle authorizations, although the available information does not establish which additional manufacturers will participate or when further approvals will be issued. For Volkswagen, this regulatory context is relevant as it advances its own testing program and stated development targets in China. The company's individual approval status must nevertheless be distinguished from the broader national pilot process.

How L3 Road Test Permits Differ From Product Approvals

A road test permit and a product approval serve different regulatory purposes in China's autonomous driving framework. A road test permit allows an automaker to evaluate conditional autonomous driving technology on designated road sections, enabling testing and data collection under the applicable conditions. Product approval, by contrast, allows approved vehicles to participate in road-use pilot programs on designated road sections. Consequently, Volkswagen's authorization in Hefei establishes permission for a defined testing activity, not unrestricted deployment or commercial availability of L3-equipped vehicles. The distinction is important when assessing the company's progress toward its 2027 target, because successful testing is one development milestone rather than proof that all necessary product approvals and deployment requirements have been satisfied.

Industry Impact & Outlook

Volkswagen's Hefei testing program adds another development effort to China's expanding conditional autonomous driving landscape, where established automakers, technology suppliers, and regulators are advancing different stages of real-world evaluation and product approval. The company's 2027 L3 readiness target and 2029 L4 objective make the collection of reliable road data and continued development of its AI driving system strategically important. Its partnership with Horizon Robotics also highlights the role of locally developed software and computing technology in Volkswagen's China strategy. The next meaningful indicators will be progress in testing, further clarity about the vehicles and systems involved, and any subsequent product approvals. Until those milestones are confirmed, the permit should be viewed as a testing authorization rather than evidence of commercial deployment.

Frequently Asked Questions

What has Volkswagen received permission to do in Hefei?
Volkswagen has received a road test permit allowing it to test Level 3 conditional autonomous driving technology on designated roads in Hefei, Anhui province. The company has started real-world testing and data collection under the program. Volkswagen China has not disclosed the vehicle models included in the authorization, the test routes, or the fleet size. The permit marks progress in the company's development program, but it does not amount to product approval or authorize unrestricted commercial deployment of L3 autonomous driving vehicles.

When does Volkswagen expect to achieve L3 autonomous driving readiness in China?
Volkswagen has stated that it aims to achieve L3 conditional autonomous driving technology readiness in China in 2027. Frank Han, executive vice president of Volkswagen Group China and CEO of Cariad China, outlined this target at a Beijing forum on April 11. He also said the company was targeting L4 autonomous driving in 2029. These dates represent the company's stated development timeline, not confirmation that the technology has already met all technical, regulatory, or commercialization requirements. The Hefei testing program is one part of the broader effort.

What is the difference between an L3 road test permit and product approval in China?
A road test permit allows an automaker to evaluate conditional autonomous driving technology on designated road sections, whereas product approval permits approved vehicles to participate in designated road-use pilot programs. The two authorizations therefore serve different purposes in the development and regulatory process. Volkswagen's Hefei permit supports real-world testing and data collection, but it does not establish that the company's vehicles have received L3 product approval. Understanding this distinction is essential when evaluating progress toward deployment because permission to test does not automatically confer permission to enter a product approval pilot.

What role does the Carizon joint venture play in Volkswagen's autonomous driving plans?
Carizon is a joint venture established in December 2023 by Volkswagen's software subsidiary Cariad and Horizon Robotics, with its headquarters in Beijing. Volkswagen invested approximately €2.4 billion and holds a 60% stake. The partnership is developing a unified AI driving solution for Volkswagen Group vehicles in China, drawing on Horizon Robotics' AI foundation model, the C7H system-on-chip under development, and the GAIA world model data platform. These technologies are intended to support L3 and L4 capabilities, although the available information does not confirm that the complete system is production-ready.

When could Volkswagen's L3-equipped vehicles begin deliveries in China?
Volkswagen and Horizon Robotics outlined plans under which deliveries of vehicles equipped with Volkswagen's L3 autonomous driving capabilities could begin as early as the second half of 2027. The timeline was announced in connection with their plans to deepen collaboration through Carizon. Volkswagen's stated objective is to achieve L3 technology readiness in 2027, while its longer-term roadmap targets L4 autonomous driving in 2029. These are announced targets rather than confirmation of actual delivery dates. The road testing permit in Hefei does not independently establish that production vehicles are approved or ready for commercial delivery.

Which vehicles received China's first L3 conditional autonomous driving product approvals?
In December 2025, China's Ministry of Industry and Information Technology granted its first L3 conditional autonomous driving product approvals for regular passenger vehicles. The approved models were the Deepal SL03 from Changan Automobile and the Arcfox Alpha S from BAIC Group. The approvals formed part of China's gradual move toward controlled road-use applications for conditional autonomous driving. An MIIT official subsequently said on October 22, 2026, that a second batch of L3 product approval pilots was being prepared, without identifying the participating automakers or vehicle models.