Posted on 28 Nov 2025
Volkswagen Group says its Chinese facilities now have autonomy to fully develop and validate products, cutting development and production costs, Kallanish reports.
With the opening of its first test workshops in Hefei, Anhui province, Volkswagen Group China Technology Company (VCTC) can bring made-in-China models to market 30% faster. Depending on the model, development costs can also be 50% lower, the German carmaker says, noting this is the first time the group has all approval processes outside Germany.
“Our ‘In China for China’ strategy continues to gain momentum,” comments Oliver Blume, chief executive of Volkswagen Group. “This milestone makes us even faster and more efficient – and brings us even closer to our customers. This will enable us, as the Volkswagen Group, to strengthen our position in the world’s largest automotive market.”
The executive adds the German carmaker has a “clear goal” of becoming “the global automotive tech driver.”
The new test workshops in Hefei feature over 100 laboratories across 100,000 square metres. The facilities are expected to accelerate the group’s rollout of the China Electronic Architecture (CEA) and deliver tailor-made digital cockpit features, advanced driving assistance systems functions and over-the-air upgrades for Chinese customers.
“China is the world’s most competitive automotive market, and our customers here expect rapid innovation and flawless quality,” says Ralf Brandstätter, chairman and ceo of Volkswagen Group China. “This is why we are taking our development capabilities in China for China to the next level.”
Volkswagen and other foreign carmakers operating in China face an aggressive EV market, with advanced technology, high quality and lower costs. To ensure it secures its position in such a market, the German company is strengthening its ability to respond quickly to local needs, focusing on intelligent and connected mobility.
Executives told reporters made-in-China vehicles could be exported to other countries in Southeast and Central Asia, but not Europe, due to a difference in electronic architecture and software technology for smart vehicles.
Source:Kallanish
