VW targets rollout of L3 capabilities in China in 2027

Volkswagen is strengthening its AI-based automated driving capabilities through deeper cooperation with Horizon Robotics, targeting the delivery of Level 3 automated driving capabilities in the second half of 2027.

Volkswagen Group China said Wednesday its intelligent driving technology unit Carizon and Horizon Robotics have signed an agreement to expand collaboration on artificial intelligence foundation model capabilities.

Under the agreement, Carizon will leverage Horizon Robotics' AI foundation model capabilities to further develop its own unified AI driving model, a system designed to handle the entire driving process from raw sensor input to decision-making in complex road environments.

Volkswagen said the AI driving model will help its automated driving systems better understand complex traffic situations, anticipate the behavior of other road users and respond more effectively to rare scenarios, improving safety and reliability.

"China has become one of Volkswagen Group's key innovation and technology hubs, particularly in software, artificial intelligence and automated driving," said Oliver Blume, CEO of Volkswagen Group.

The cooperation will combine Horizon Robotics' AI foundation model capabilities with Carizon's proprietary technology stack, including its C7H system-on-chip and GAIA World Model data platform.

Volkswagen said the integrated system is designed to meet safety and quality requirements for the development of Level 3 automated driving and future Level 4 applications, including passenger vehicles and robotaxi scenarios.

It will also support continuous improvement of the company's existing L2++ advanced driver assistance systems.

The AI-based automated driving system will be integrated with Volkswagen Group's China Electronic Architecture, the company's first locally developed zonal electrical and electronic architecture.

Volkswagen said the architecture will enable the deployment of intelligent driving capabilities across multiple vehicle platforms and models in China, as well as in selected markets.

"With our own L2++ ADAS solution already in series production, we have demonstrated our ability to deliver and the strength of our in-house capabilities," said Ralf Brandstaetter, member of the Board of Management of Volkswagen AG responsible for China and chairman and CEO of Volkswagen Group China.

"Building on one of the most advanced AI models for automated driving on the market now sharpens our tech edge. It enables us to advance our own L3 and L4 solutions faster, safely and at scale," Brandstaetter added.

Volkswagen Group China has been accelerating the development and deployment of automated driving technologies through Carizon.

By the end of 2025, Carizon had delivered its first L2+ advanced driver assistance system, which enabled highway Navigate on Autopilot and memory parking functions on the ID. UNYX 07 and the new version of the ID. UNYX 06.

In the third quarter of 2026, Carizon's L2++ ADAS solutions, which expand urban NOA capabilities, entered series production.

The systems will be rolled out across seven newly launched new energy vehicle models from Volkswagen Group China's joint ventures this year, before expanding to a broader portfolio based on the CEA architecture from next year.