Volkswagen Secures L3 Autonomous Road Test Permit in Hefei

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.

The Road From Cariad to Carizon

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.

The Race Against Domestic Incumbents

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. Those pilot approvals grant operational use rights on designated public highways, putting local carmakers a full step ahead of test-permit holders like Volkswagen.

Regulatory Gates and Timelines

A testing permit allows development vehicles to map routes and log corner cases, but it does not permit serial production sales. Full commercial deployment requires separate product clearance from industrial regulators; an MIIT official said on October 22 that work on a second batch of L3 product approval pilots was underway.

Frank Han, executive vice president of Volkswagen Group China and chief executive of Cariad China, told an industry conference in April that the manufacturer intends to reach Level 3 capabilities in 2027 before attempting Level 4 autonomous operations in 2029.

Volkswagen presents its broader platform strategy at its first Hefei Technology Day on October 28, where engineers will outline hardware timelines for the group’s Chinese vehicle pipeline.