Volkswagen has secured a road test permit for Level 3 (L3) autonomous driving in Hefei, Anhui province, and has begun real-world testing and data collection as it advances its plans for conditional autonomous driving in China.
The permit marks a step toward Volkswagen Group’s target of achieving L3 technology readiness in China in 2027, Volkswagen China said in a statement on Monday.
The company did not disclose which vehicle models are covered by the permit, the designated test routes or the size of the testing fleet.
Volkswagen China is scheduled to hold its first Technology Day in Hefei on Wednesday, October 28, where it will showcase its latest technological developments.
Volkswagen Maintains Its L3 and L4 Timeline
Volkswagen has previously outlined plans to introduce increasingly advanced autonomous driving capabilities in China. On April 11, Frank Han, executive vice president of Volkswagen Group China and CEO of Cariad China, said at a Beijing forum that the company aimed to achieve L3 conditional autonomous driving in 2027, followed by L4 autonomous driving in 2029.
The company reiterated its development timeline through a July 22 announcement concerning its partnership with Horizon Robotics (HKEX: 9660). The two companies plan to deepen their collaboration on artificial intelligence foundation models through their joint venture, Carizon, with vehicle deliveries featuring Volkswagen’s L3 capabilities expected to begin as early as the second half of 2027.
Carizon Develops AI Driving Technology for China
Established in December 2023 by Volkswagen software subsidiary Cariad and Horizon Robotics, Carizon is headquartered in Beijing. Volkswagen invested approximately €2.4 billion in the venture and holds a 60% stake.
The joint venture is developing a unified AI driving solution for Volkswagen Group vehicles in China, using Horizon Robotics’ AI foundation model. The system is planned to work with the C7H system-on-chip, which remains under development, and the GAIA world-model data platform.
The technologies are intended to support the development and deployment of L3 and L4 autonomous driving capabilities for the Chinese market.
China Expands L3 Autonomous Driving Pilots
Volkswagen’s road test permit comes as China gradually expands opportunities to test and deploy conditional autonomous driving systems.
In December 2025, China’s Ministry of Industry and Information Technology (MIIT) granted its first conditional L3 product approvals for regular passenger vehicles. The approved models were the Deepal SL03 from Changan Automobile and the Arcfox Alpha S from BAIC Group.
On October 22, an MIIT official said preparations for a second batch of L3 product approval pilots were underway but did not identify the manufacturers or vehicle models involved.
Road Test Permits Differ From Product Approvals
A road test permit allows automakers to evaluate autonomous driving technology on designated road sections and collect real-world data. Product approval is a separate regulatory step that allows eligible vehicles to participate in road-use pilot programs on specified routes.
Volkswagen’s permit therefore enables further testing but does not, by itself, constitute product approval or authorization for broader commercial deployment.
The Hefei tests will provide another stage in Volkswagen’s effort to develop L3 capabilities for China, ahead of its stated 2027 technology-readiness target.