Volkswagen Debuts Advanced Tech and Alliances at CIIE to Boost China’s EV Market

On November 11, the auto giant intensified its focus on smart vehicles at the recent China International Import Expo. After over four decades operating in China, the manufacturer is now emphasizing in-house development of core technologies and forming local partnerships to boost its competitiveness as it aims for leadership in the world’s largest electric vehicle market.

The company showcased eight new-generation intelligent connected vehicles alongside classic models at this year’s expo, which wrapped up yesterday. Among these were five electrified models and the new Porsche 911 Turbo S, making its Asian debut at the event.

Additionally, the automaker partnered with a local robotics company to develop intelligent driving chips, marking a significant move in its strategy to develop key smart car technologies domestically.

The joint venture between the automaker and the robotics firm is independently designing and developing system-on-chip (SoC) processors, announced during a press briefing at the expo on November 5. The self-developed SoC chip offers 500 to 700 trillion operations per second of computing power and is tailored to handle China’s complex driving conditions by processing large volumes of data in real time. Mass production is expected within three to five years, with the initial deployment on vehicles equipped with Level 3 and higher autonomous driving capabilities.

The company ensures that new vehicle models under development are thoroughly tested by members of its executive board. According to a senior executive, having board members personally test drive the vehicles is a crucial step in decision-making. This hands-on experience helps verify the performance of advanced driver assistance systems, smart infotainment features, and AI integrations on Chinese roads—an essential step before mass market launch.

To underpin its long-term strategy, the executive extended his contract by three years in July. During his tenure, the firm transformed its Chinese R&D center in Hefei into its largest outside Germany, employing over 3,000 engineers and reducing new vehicle development cycles to three years.

The company has also strengthened collaborations with local automakers and tech startups, including partnerships with established players and emerging companies like Xpeng Motors. Its joint project with Xpeng on Chinese electronic architecture has cut vehicle development time by 30% and lowered costs by 40%.

Developing chips domestically is a key milestone within its “In China, For China” strategy, signifying a shift from mere local production to the local R&D of essential technologies, the executive noted.

The company’s smart vehicle transformation is now entering the delivery phase. Starting next year, it plans to introduce vehicles featuring its proprietary architecture and advanced driver assistance tech. Over 20 electric smart models are scheduled for launch by 2027, aiming to expand its electric lineup to about 30 models by 2030. The goal is to cover all key market segments and enhance its competitiveness in China’s smart vehicle sector.