Volkswagen ramps up China EV push with smart-tech alliances at CIIE
At the China International Import Expo (CIIE), Volkswagen Group showcased a bold local strategy to deepen its electric vehicle-tech capabilities in China. The automaker displayed eight next–generation connected vehicles, including five electric models, while reinforcing its “In China, for China” vision. Yicai Global
A big part of VW’s plan is its joint venture with Horizon Robotics, called Carizon, which is building a homegrown system-on-chip (SoC) tailored for autonomous driving in China. According to Volkswagen, the SoC can handle 500–700 tera operations per second, making it well-suited for complex road conditions and the demands of Level-3 and above driving systems.
On the software-architecture side, Volkswagen is also working with XPENG to build the China Electrical Architecture (CEA), a zonal E/E (electrical/electronic) platform designed for local EV development. The architecture cuts hardware complexity and supports over-the-air updates, helping digital features evolve faster.
Volkswagen’s commitment to China goes beyond just local development: its China Technology Company in Hefei, Anhui, now houses over 3,000 engineers and has become a major R&D hub outside Germany. According to the company, more than 20 smart EV models are slated for launch by 2027. By 2030, VW aims to offer around 30 fully-electric models in China.
Editor’s View
Volkswagen’s moves at CIIE reflect a sharper, more localized EV strategy: not just building cars in China, but building the brains of those cars in China too. The partnership with Horizon Robotics to build a high-performance SoC is a smart bet; it’s a clear signal that VW wants to own critical driving compute rather than rely purely on external suppliers.
With the CEA architecture co-developed with XPENG, Volkswagen isn’t just cutting costs; it’s building for adaptability and future-proof connectivity. As EVs proliferate, the ability to upgrade over-the-air and integrate advanced driving systems will be a key differentiator.
For global auto manufacturers, VW’s “In China, for China” playbook shows that winning China’s EV market now requires a local-first R&D mindset. And for the tyre industry, this could mean rising demand for tyres designed specifically for these smart EVs, given their different weight profiles, usage patterns, and driving dynamics.
