On November 25, Volkswagen (China) Technology Co., Ltd. (VCTC) officially opened its new testing workshop in Hefei, marking the completion of Volkswagen Group's first full-process R&D and testing center outside its German headquarters.

With the opening of this new testing workshop, Volkswagen has established a complete end-to-end R&D system in China, achieving efficient integration of the entire chain from software R&D and hardware testing to vehicle verification. This means that for the first time, the Chinese market has full control over the entire chain from R&D to mass production.

01

Strategic Significance

Volkswagen Group's decision to place its first full-process R&D and testing center outside Germany in China reflects its deep commitment to its 'In China, For China' strategy.

Ralf Brandstaetter, Chairman and CEO of Volkswagen Group China, admitted, 'China is the most fiercely competitive automotive market globally, with local customers having extremely high demands for innovation speed and quality.'

This is precisely why Volkswagen continues to strengthen its local R&D capabilities.

As the Chinese automotive market leads global trends in electrification and intelligence, Volkswagen Group's layout demonstrates its long-term commitment to the Chinese market.

This testing workshop ensures that the group's future products can meet the preferences and expectations of Chinese customers from the outset.

Oliver Blume, Chairman of the Board of Management of Volkswagen Group, stated that with this core advantage, Volkswagen Group will further consolidate its leading position in the world's largest automotive market.

02

Scale and Capabilities

The Hefei testing workshop covers approximately 100,000 square meters and is equipped with over a hundred advanced laboratories, covering key capabilities such as software and hardware integration, battery and powertrain testing, and vehicle-level verification.

At the battery and power system integration testing center, VCTC's engineers can test up to 500 battery systems annually, covering battery performance, lifespan, safety, and environmental adaptability, extending to key components such as electric drive systems, thermal management systems, and battery cells.

The platform and module testing center boasts a cutting-edge electromagnetic compatibility laboratory, ensuring the reliability of vehicle electronic equipment in all aspects.

The vehicle durability test rig can simulate various global road conditions indoors.

Combined with the urban test track also located at VCTC, Volkswagen Group has established a complete closed loop from design and development to testing and verification in Hefei.

03

R&D Efficiency Improvement

Efficiency improvement is the most direct value of this new testing workshop.

Relying on the new software-defined vehicle development process, the vehicle development cycle will be shortened by approximately 30%.

By promoting localized autonomous development and supplier collaboration during the conceptual R&D phase of models and technologies, the cost of new models for some key projects can be reduced by up to 50%.

Thomas Ulbrich, Chief Technology Officer of Volkswagen Group China and CEO of VCTC, said, 'The new testing workshop brings a completely upgraded integration capability to the engineering team. Our R&D team can conduct software, hardware, and vehicle verification work simultaneously.'

This parallel working mode significantly shortens the R&D decision-making chain, enabling the rapid delivery of reliable and innovative results to real vehicles.

04

Focus on Chinese Market Needs

As the core pillar of Volkswagen Group's 'In China, For China' strategy, VCTC is not only the group's largest comprehensive R&D center outside its German headquarters but also the group's only innovation engine dedicated to the development of electrified and intelligent connected vehicles.

VCTC and CARIAD China are advancing the first-generation delivery of the group's first central computing and regional control electronic and electrical architecture (CEA) tailored for the Chinese market with an 18-month R&D cycle.

This electronic and electrical architecture, designed specifically for the Chinese market, will ensure smooth and reliable software and hardware integration of intelligent cockpit functions and advanced driver assistance systems, and provide the capability for over-the-air (OTA) services at the vehicle level for the next generation of models.

By deeply integrating into China's local technology ecosystem, VCTC can proactively plan and respond to decisive development trends in the Chinese market, such as high digitization and autonomous driving.

05

Future Outlook and Global Role

Volkswagen Group is steadily expanding and strengthening the R&D capabilities of VCTC.

As one of only two similar laboratories globally, the Function Integration Testing (FIT) laboratory with the capability to simulate complex and extreme environments will be put into operation in mid-2026.

The layout and implementation of these subsequent R&D capabilities in the new testing workshop will lay a solid foundation for the group's next stage in the field of intelligent connected mobility.

The opening of the new testing workshop not only demonstrates the group's long-term commitment to China but also provides important support for products and technologies exported to overseas markets such as ASEAN and the Middle East.

This indicates that the Hefei center not only serves the Chinese market but also begins to support Volkswagen's global strategy.

With the full opening of the Hefei testing workshop, Volkswagen has formed a complete innovation cycle in the Chinese market: from market insight to technology development, from product verification to mass production, all completed in China.

This R&D center in Hefei is already capable of independently completing the entire process from vehicle design to mass production without relying on the German headquarters for core links.

Volkswagen's strategic layout marks that in addition to its market importance, China has further established itself as an innovation center in Volkswagen's global landscape.