VW, Horizon Robotics Boost China Autonomous Driving Partnership
Volkswagen is ramping up its partnership with Chinese technology company Horizon Robotics as the German automaker seeks to accelerate the development of autonomous driving technologies and strengthen its position in China’s fast-growing smart vehicle market, Bloomberg reports.
Under the expanded collaboration, Volkswagen’s China-based automated driving unit CARIZON will gain access to Horizon Robotics’ AI foundation model, helping the company speed up the development of advanced driver-assistance and self-driving systems.
According to the report, Volkswagen said it plans to begin delivering vehicles equipped with Level 3 driver-assistance technology in China from the second half of 2027. The company will also roll out Level 2++ assisted driving capabilities across its China lineup this year, with vehicles expected to reach customers during the third quarter.
The wider partnership will also help develop Level 4 autonomous technologies, including robotaxi applications, as Volkswagen tries to catch up with Chinese rivals and global EV leaders.
Level 3 systems let vehicles drive themselves under certain conditions, but require drivers to be prepared to take control when necessary. Level 4 technology takes it a step further, with cars able to deal with most driving situations without any human input.
The move comes as intelligent driving features become a key battleground in China’s automotive industry. According to Chinese government data, more than 30% of new vehicles sold in the country during the first half of 2026 were equipped with advanced navigation-guided driving assistance systems.
Volkswagen and other global automakers have increasingly shifted technology development to China to capitalise on the country’s growing strengths in electric vehicles, software and artificial intelligence. Domestic brands such as BYD and international players including Tesla already offer advanced driving assistance technologies across much of their vehicle portfolios.
“China has become one of Volkswagen Group’s key innovation and technology hubs, particularly in software, artificial intelligence and automated driving,” Volkswagen CEO Oliver Blume said. He added that the collaboration would strengthen the company’s competitiveness in China while opening opportunities in selected international markets.
The self-driving technologies developed through the partnership are expected to be integrated into Volkswagen’s China-specific vehicle architecture and could eventually support exports from China to markets including Southeast Asia, Central Asia and the Middle East.
As autonomous driving becomes a major differentiator for carmakers, Volkswagen is relying on Chinese technology partnerships to close the gap with rivals and accelerate innovation in one of the world’s most competitive automotive markets.
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