Volkswagen Tests Level 3 Autonomous Driving in China Ahead of 2027 Target

Volkswagen has started testing Level 3 autonomous driving technology on public roads in Anhui province, eastern China, after securing a road testing permit. The number that stands out: 3,000. That's the count of R&D specialists at the group's massive center in Hefei — German and Chinese engineers working side by side on this tech. The goal is clear: full readiness by 2027.

What Level 3 autonomous driving actually means

Level 3, or conditional driving automation, lets the vehicle perform dynamic driving tasks while requiring the human driver to stay available to take over when the system requests intervention. It's not full self-driving. It's a precise balance between machine and human. The system handles the work, but calls the driver back the moment conditions get complicated. The new permit opens the door for Volkswagen to collect real traffic data in Hefei, a step the group's China chief called "a new step toward achieving Level 3 readiness."

3,000 engineers and billions invested in Hefei

The city itself has become the heart of the German group's technical development outside Germany. Volkswagen has invested over 3.5 billion euros in Hefei, home to the group's largest R&D center outside Germany. Around 3,000 specialists work there — a mix of German expertise and Chinese knowledge of the local market. That combination isn't random: China has advanced digital infrastructure and a flexible regulatory framework that allows broader field testing than what's available in Europe. The "Carizon" project — a joint venture between Volkswagen's software unit CARIAD and China's Horizon Robotics — is the execution tool for this development.

China, for its part, is gradually expanding the application of autonomous driving tech within a clear regulatory framework. In December 2025, the Ministry of Industry and Information Technology granted conditional approvals for two Level 3 electric models produced by Changan Automobile and ArcFox for BAIC Motor, allowing trials on selected roads in Chongqing and Beijing. This regulatory expansion reflects a fierce race between global and local companies to dominate this technology.

Safety first... but the competition heats up

Ralf Brandstätter, Chairman and CEO of Volkswagen Group China, said: "Safety and reliability come first in autonomous driving." The statement sounds technical, but it carries an implicit competitive message: the company isn't rushing. The 2027 target isn't far, but it's not close either. The remaining period will see intensive data collection from Hefei's streets, analysis, then additional testing. Competitors — from Toyota to Hyundai to emerging Chinese tech firms — are moving in the same direction. The outcome will determine who sets the new standards for autonomous driving in the world's largest car market.

The public road tests in Anhui aren't just a regulatory step. They're a declaration of intent. Volkswagen is betting on China as a primary testing ground for its advanced technologies. By 2027, if all goes to plan, we may see the first Level 3 production cars carrying the German badge on the roads of Beijing and Shanghai — and possibly other cities worldwide.