Key facts
- Volkswagen's CARIZON unit and Horizon Robotics are deepening their partnership to accelerate self-driving technology development in China.
- The collaboration focuses on Level 3 and Level 4 autonomous driving technologies.
- Volkswagen plans to launch Level 3 autonomous vehicles in China in 2027.
- CARIZON will develop Volkswagen's first in-house chip for smart driving functions with 500-700 TOPS of computing power.
- The in-house chip is expected to be delivered within three to five years.
Volkswagen Group China announced it is deepening its partnership with Horizon Robotics to accelerate the in-house development of Level 3 and Level 4 autonomous driving technologies, aiming to better compete in the Chinese auto market. This move underscores the German automaker's urgent need to advance its smart electric vehicle strategy and reverse declining sales in its largest market, following internal software development challenges.
Under the expanded collaboration, Volkswagen's automated driving unit, CARIZON, will develop the company's first in-house System-on-Chip (SoC) for smart driving functions. This chip is designed to process sensor data with a computing power of 500-700 TOPS and is expected to be ready within three to five years. Volkswagen plans to launch its first Level 3 autonomous vehicles in China in 2027, with deliveries beginning in the second half of next year. The company will also introduce Level 2++ assisted driving technology in China this year.
Additionally, Volkswagen is partnering with Chinese EV manufacturer Xpeng to develop a new electronics platform for its Chinese models, potentially facilitating exports to other Asian and Middle Eastern markets. This strategic push comes amid intense competition from Chinese companies like BYD, which offer more affordable and technologically advanced EVs, and as German automakers face declining sales and evolving regulatory landscapes.