Volkswagen’s Chinese branch is focusing more on self-driving technology in the coming months. The company’s automated driving branch, CARIZON, based in China, will strengthen its tie-up with Horizon Robotics, according to the report. This move aims to help Volkswagen develop its own sophisticated self-driving technologies more quickly by using Horizon Robotics’ artificial intelligence model.
The partnership includes developing Level 3 autonomous driving technologies, where drivers can take their eyes off the road, and Level 4 technology, which will be driverless robotaxis. Volkswagen plans to introduce its first Level 3 autonomous driving vehicles to the Chinese market in 2027.
These cars are expected to let drivers cede full control to the vehicle under specific circumstances, such as on motorways. Deliveries for the Level 3 cars are due to start in the second half of next year.
Volkswagen will also start rolling out Level 2++ technology cars in the Chinese market this year, which will be for urban assisted driving. These vehicles can handle traffic lights, stop signs, roundabouts, and automated turns.
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The company’s CEO, Oliver Blume, said this move would help strengthen Volkswagen’s competitiveness in China and usher in new opportunities in certain foreign markets.
Volkswagen has also tied up with Xpeng, a Chinese electric vehicle manufacturer, to further solidify its position in the regional market and develop a new electronics platform for its Chinese models. This will work closely with the AI-assisted self-driving technology and allow more consumers across Central and Southeast Asia, as well as the Middle East, to adopt the system as Volkswagen attempts to export more from China to these markets.
German car companies have been under pressure from China in recent years, with falling sales, changing European regulations, and the COVID-19 pandemic all hitting at once. Rising competition from Chinese auto manufacturers has added to this turmoil, and EU-China trade and tariff tensions have made the situation worse.
China has pulled back many benefits for German car companies like Volkswagen, Mercedes, Audi, and BMW, which had manufacturing operations in the country in recent years. These benefits included cheaper land and lower tax rates, among other incentives.
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Now, these European companies are under increased pressure from China’s faster technology rollout for mass-market vehicles. Several Chinese cities already have fully driverless robotaxi services, and many European consumers are turning towards Chinese EV companies like BYD for their relatively more affordable prices, sleek designs, and modern features.
Companies like Mercedes-Benz and BMW have suspended their Level 3 offerings in some flagship models after a short stint. Volkswagen has also faced additional scrutiny lately due to considering a historic restructuring plan.
This plan could see up to 100,000 jobs slashed and close four plants across Germany.