Volkswagen is doubling down on Chinese partner Horizon Robotics as it tries to close the driver-assistance gap with local EV rivals, expanding the mandate of their joint venture Carizon around a unified AI driving model that will underpin Level 3 cars from the second half of 2027 and future robotaxi work.
What Was Announced
Carizon — the smart-driving joint venture between Volkswagen Group China and Horizon Robotics — has signed a new agreement to expand collaboration on artificial intelligence foundation model capabilities. Carizon will lean on Horizon's AI foundation models to advance its own unified AI driving stack, which the German carmaker says will meet the safety and quality bar for Level 3 assisted driving and future Level 4 robotaxi platforms.
Timeline For Chinese Roads
Cars fitted with Level 2 systems are already in production and are set to reach Chinese roads in the third quarter of 2026. Volkswagen now wants to start delivering Level 3 vehicles in China from the second half of 2027, aligning with Beijing's push to open the mass market to higher levels of autonomy from next year. The Level 3 push runs in parallel with a broader charm offensive from VW that has already produced an in-house smart driving chip and a China-first assisted driving software team.
Why It Matters
Carizon is the clearest signal yet that Volkswagen sees local partnerships — not global platforms — as the fastest way to catch up with BYD, Xpeng and Nio in a Chinese EV market where assisted driving has become a purchase driver. The move also tightens the strategic bond between VW and Horizon Robotics as its homegrown Xuanji A3 4nm chip pulls more design work in-country. Robotaxi ambitions from Chinese OEMs, such as SAIC Mobility's 2027 debut, only sharpen the competitive stakes.
Reporting based on coverage from Bloomberg, Volkswagen Group, China Daily and CnEVPost.