The Volkswagen Group is enhancing its local technology capabilities in China as part of its commitment to the "In China, for China" strategy. At Auto Shanghai, Volkswagen is set to unveil its first proprietary AI-powered, highly automated driving system. Developed for China's complex traffic, this self-learning system is designed to offer seamless and safe driving experiences. It utilizes a System-on-Chip (SoC) for rapid response to various driving scenarios. Volkswagen plans to introduce a model with this technology in China by year's end and integrate it into models based on the China-specific Compact Main Platform (CMP) next year, making it available to the compact segment.
This development is significant as it builds in-house competence for core technologies demanded by Chinese customers. Currently, a quarter of all new vehicles in China have a Level 2 driving system for highways, with Level 2+ expected in over 80% of vehicles by 2030. Additionally, Level 2++, covering both highway and city traffic, is expected in 75% of new vehicles.
Volkswagen established CARIZON, a joint venture between its software unit CARIAD and Horizon Robotics, in November 2023. This venture specializes in automated driving systems for China. Over 500 software experts in Beijing and Shanghai have advanced the new ADAS technology.
Ralf Brandstätter, Volkswagen AG Group Board Member for China and CEO of Volkswagen Group China, stated: “With our new ADAS system, we are demonstrating what is possible when strengths of Volkswagen are combined with local innovation. The system has been developed at ‘China speed’, fully tailored to the needs of our Chinese customers and will set a new benchmark in the market for driving performance, safety and quality. The rapid progress we have made reflects the outstanding capabilities of our joint venture CARIZON and the successful implementation of our ‘In China, for China’ strategy.”
GAIA, CARIZON's AI-powered data platform, accelerates development cycles by making vehicles predictive driving companions. “GAIA” collects two terabytes of data per vehicle each day, enabling AI training of vehicle software.
Marcus Hafkemeyer, CEO of CARIZON, remarked: “With a team of 500 local ADAS experts and the consistent integration of AI in the development process, we have built an advanced ADAS system in a very short time—one that will deliver outstanding performance in driving performance and safety. This year, we will bring Level 2+ ADAS to the road. Level 2++ ADAS with Urban Navigate on Autopilot (NoA) is in advanced testing and will be launched in 2026. This will also enable us to lay the technological foundations for a fast-track evolution towards Level 3.”
Volkswagen Group is accelerating its transformation with its “In China, for China” strategy. At Auto Shanghai 2025, the Group will present a new generation of smart electric vehicles from Audi and Volkswagen brands. By 2027, Volkswagen will launch over 20 new fully electric and electrified models, aimed to reach around 30 fully electric models by 2030.