Dadunation – Volkswagen Group is gearing up for a major comeback in the Chinese automotive market by introducing an advanced driver-assistance system (ADAS) powered by artificial intelligence (AI). This strategic move follows a challenging 2024, during which the German automaker experienced a nearly 10% drop in sales in China.
To strengthen its position, Volkswagen has formed a joint venture called Carizon, in collaboration with its software division Cariad and Chinese tech giant Horizon Robotics. Together, they have developed a cutting-edge ADAS platform in just 18 months, which will be officially unveiled at the upcoming Auto Shanghai event.
The platform supports Level 2++ autonomous driving, with a long-term vision to evolve toward Level 3 and beyond. Developed by approximately 500 software engineers based in Shanghai and Beijing, the system is capable of collecting up to two terabytes of data per vehicle per day and recording over 100,000 kilometers of test-driving data daily.
The first batch of vehicles featuring this platform—most likely fully electric—are expected to hit the Chinese market by the end of 2025. The system will also be integrated into the China-specific Compact Main Platform (CMP), allowing advanced driving features to become accessible in more affordable vehicles.
This initiative is part of Volkswagen’s broader effort to catch up with Chinese automakers like BYD and Geely, who currently dominate the EV market with cost-effective yet high-tech offerings. China remains the global leader in autonomous vehicle testing, with over 19 cities allowing real-world public road trials.
Meanwhile, Japanese automakers Toyota, Nissan, and Honda are also seeking to regain ground through a new consortium called ASRA, which has received $286 million in subsidies from the Japanese government. The group plans to develop standard next-generation semiconductor chips for smart vehicles, with the first releases expected by 2029.
Interestingly, while Chinese companies like BYD and CATL hold fewer EV-related patents than legacy automakers like Toyota or Volkswagen, their patents are considered more impactful and relevant to current technologies. CATL, in particular, is currently ranked as having the most influential patents in the EV space.
As a strategic response to global trade protectionism, several Chinese companies are now turning to technology licensing as a diplomatic tool. The licensing deal between CATL and Ford to locally produce LFP batteries in the U.S. serves as a prime example of how intellectual property can be leveraged for market access.
With this renewed push into China and a strong focus on smart, AI-powered mobility, Volkswagen aims to compete directly with domestic giants and secure its place in the rapidly evolving era of self-driving electric vehicles.
Reported by Dadunation
