(Yicai) Nov. 11 -- Volkswagen Group ramped up its smart car presence at the recent China International Import Expo. After more than 40 years in China, the German auto manufacturer is betting on the in-house development of core technology and local partnerships to sharpen its competitive edge, as it vies for pole position in the world’s biggest EV market.

Volkswagen brought eight new-generation intelligent connected vehicles and classic models to this year's CIIE, which ended yesterday. This included five electrified models and the new Porsche 911 Turbo S, which made its Asian debut at the expo.

The firm has also teamed up with Chinese robotics firm Horizon Robotics to develop intelligent driving clips, marking a major step in Volkswagen’s strategy of developing core smart car technologies locally.

Carizon, a joint venture between Volkswagen and Horizon, independently designs and develops system-on-chips, Volkswagen said at a press conference at the CIIE on Nov. 5.

The JV’s self-developed SoC chip delivers 500 to 700 tera operations per second of computing power. Designed for China’s complex road conditions, it can process massive amounts of driving data in real time. Mass-production is expected to start within three to five years and the chip set will be first used on vehicles equipped with L3 and above autonomous driving systems.

Leaving nothing to chance, new vehicle models under development are tested by members of Volkswagen’s Board

Having Board members test drive the autos themselves is a key part of the decision-making process, said Ralf Brandstätter, chairman and chief executive officer of Volkswagen China.

The goal is to check how the latest advanced driver assistance system, smart cockpit features and AI agent integration are operating, said Brandstätter, who is also a member of Volkswagen’s Management Board. Only by personally experiencing how the cars perform on Chinese roads can the Wolfsburg-based firm confirm whether the technology is mature enough, which is an essential step before launching the autos on the market.

To support long-term strategy, Volkswagen extended Brandstätter’s contract in July by another three years. During his first term in office, Volkswagen turned its Volkswagen China Technology Company in Hefei, eastern Anhui province into the carmaker’s largest R&D center outside Germany, with over 3,000 engineers, and cutting the new vehicle development cycle to three years.

Volkswagen has also deepened ties with SAIC and China First Automobile Group, and is teaming up with emerging tech firms such as Xpeng Motors. The China Electronic Architecture co-developed with Guangzhou-based Xpeng has shortened the vehicle development cycle by 30 percent and reduced costs by 40 percent.

Developing chips in-house is a key milestone of the “In China, For China” strategy, signaling a move from local production to local R&D of core technology, Brandstätter said.

Volkswagen’s smart car transformation has already entered the delivery stage. From next year, the firm plans to start rolling out vehicles equipped with the CEA architecture and Carizon’s assisted driving tech. More than 20 electric smart car models are slated for launch by 2027, and by 2030, the company aims to expand its pure electric line-up to around 30 models, covering all key market segments and strengthening its competitiveness in China’s intelligent vehicle market.

Editor: Kim Taylor