Volkswagen has expanded its partnership with Horizon Robotics to accelerate the development of Level 3 automated driving technology in China, with series production targeted for the second half of 2027. According to Handelsblatt, the expanded collaboration is intended to strengthen the capabilities of the companies’ joint venture, Carizon, and accelerate the rollout of highly automated driving systems for the Chinese market.
Expanded Partnership
Volkswagen said Carizon will gain access to Horizon Robotics’ AI foundation model to support development of its own automated driving software stack.
The joint venture is majority owned by Volkswagen through its software subsidiary Cariad, which holds a 60% stake.
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Carizon has already developed a computing chip for intelligent driving applications that is intended for future use in China.
According to Handelsblatt, the expanded collaboration is designed to accelerate development from advanced driver assistance systems to Level 3 automated driving capabilities.
Level 3 Functions Planned for 2027
Volkswagen plans to introduce Level 3 automated driving functions for customers in China beginning with series production in the second half of 2027.
Under Level 3 automation, the vehicle can perform the driving task under specified conditions without continuous driver supervision, although the driver must be ready to resume control when requested.
The company said the technology will be integrated into its China Electronic Architecture 2.0 (CEA 2.0), which is being developed for vehicles based on Volkswagen’s China-Specific Platform (CSP).
According to Volkswagen, the architecture is also intended to support future development toward Level 4 automated driving.
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“China is one of our key gateways to innovation and technology – particularly in software, artificial intelligence, and automated driving,” said Oliver Blume, chief executive officer of Volkswagen Group.
Building Local Technology Capabilities
The latest announcement builds on Volkswagen’s broader strategy to expand automated driving development in China.
In 2025, the company announced that Carizon would develop its first system-on-chip (SoC) for driver assistance and automated driving applications.
The planned computing platform is designed to deliver between 500 and 700 TOPS of processing performance to handle large volumes of sensor data while enabling closer integration of hardware and software.
Volkswagen plans to launch vehicles equipped with Carizon-developed Level 2++ driver assistance systems and the regional CEA electronic architecture from 2026, initially using third-party semiconductor chips before introducing its own SoC in later production.
China-Focused Strategy
According to Handelsblatt, Volkswagen is also seeking a new technology partner for future Level 3 automated driving development following the end of its collaboration with Bosch earlier this year. UK-based AI company Wayve has been identified as a potential candidate, although no partnership has been confirmed.
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Volkswagen said its strategy extends beyond adapting existing group technologies for China and instead focuses on developing a dedicated technology stack covering computing hardware, software and automated driving functions tailored to the local market.
The automaker noted that intelligent driver assistance systems have become an increasingly important purchasing factor for Chinese consumers as domestic manufacturers continue to advance automated driving technologies.
The company added that while technical readiness is targeted for 2027, commercial deployment of Level 3 functions will also depend on China’s regulatory approvals, which continue to evolve for higher levels of vehicle automation.