Volkswagen is set to introduce Level 3 automated driving technology in China, marking a significant step forward for the brand’s driver assistance capabilities. The new system, developed in partnership with Horizon Robotics through their Carizon joint venture, will debut in customer vehicles in the second half of 2027. This move positions Volkswagen to compete more directly with local and global rivals in the rapidly evolving Chinese market.
Volkswagen and Horizon Robotics Collaborate on Advanced AI Driving
Volkswagen has partnered with Chinese technology firm Horizon Robotics to develop its next-generation automated driving system. The collaboration operates under the Carizon joint venture, which will leverage Horizon’s AI foundation models to create a unified AI driving model for Volkswagen vehicles.
This AI model is designed to manage end-to-end driving tasks and will use advanced technologies to better predict the behavior of other road users. The system will be integrated into Volkswagen’s China Electronic Architecture (CEA), the company’s first locally developed zonal electronic and electrical platform.
Level 3 Autonomy and Expanded ADAS Features
Volkswagen plans to roll out Level 3 automated driving in China in the second half of 2027. Level 3 autonomy allows the vehicle to handle driving within specific conditions, freeing the driver from constant supervision.
Currently, Carizon’s L2+ advanced driver assistance system (ADAS) is available in several Volkswagen models in China, including the ID. Unyx 07 and ID. Unyx 06. These systems offer features such as highway Navigate on Autopilot and memory parking. Later this year, an upgraded L2++ version will extend Navigate on Autopilot to urban environments and will be available on seven of Volkswagen’s new energy vehicles in the Chinese market.
Competitor Comparison
Volkswagen’s move to introduce Level 3 autonomy in China comes as the brand faces increasing competition from domestic automakers such as BYD and Geely Auto, both of which have surpassed Volkswagen in sales in recent years. While Volkswagen held a 10.9% share of retail sales in China, this is down from 12.2% in 2024, reflecting the growing strength of local brands in advanced driver assistance and smart driving technologies.
Historical Context
Volkswagen’s sales in China reached 2.9 million vehicles in 2024, representing an 8% year-on-year decline. The brand’s market share has also decreased as younger buyers increasingly turn to domestic competitors. The introduction of advanced automated driving features is part of Volkswagen’s strategy to regain its position in the Chinese market.
Why this matters
The launch of Level 3 automated driving in China highlights Volkswagen’s focus on innovation in one of its most important markets. By partnering with Horizon Robotics and investing in local technology development, Volkswagen aims to keep pace with rapidly advancing Chinese competitors and address shifting consumer preferences.
This development could influence the adoption of similar technologies in other regions, particularly as Volkswagen integrates its new AI driving stack into additional model lines.
What this means for buyers
For buyers in China, Volkswagen’s upcoming Level 3 system promises more advanced automated driving features, especially in urban environments. Those considering a new energy vehicle from Volkswagen may want to watch for the rollout of the L2++ ADAS upgrade later this year and the Level 3 system in 2027.
Buyers should also compare Volkswagen’s offerings with those from leading domestic brands, as the competitive landscape is evolving rapidly.
Related coverage from The Electric Viking
For more on the rapid development of smart driving technologies in China, see Chinese Carmakers Accelerate In-House Smart-Driving Chip Development.
Key Specs
- Level 3 Automated Driving Launch: Second half of 2027 (China)
- ADAS Supplier: Horizon Robotics (Carizon joint venture)
- Current ADAS Availability: L2+ in ID. Unyx 07, ID. Unyx 06
- Upcoming ADAS Upgrade: L2++ with urban Navigate on Autopilot, arriving later this year
- Target Models for L2++: Seven new energy vehicles in China
- China Market Share (2024): 10.9% (down from 12.2% in 2024)
- China Sales (2024): 2.9 million vehicles
Source
Images sourced from: autoweek.com, thedrive.com
