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Volkswagen Deepens China Tie-Up With Horizon to Accelerate Level‑3 Autonomy

The company is building a China‑focused AI and compute stack intended to make conditional hands‑off driving technically series‑ready by the second half of 2027 subject to Chinese regulator approval.

Overview

  • This week Volkswagen’s Cariad‑backed JV Carizon agreed to deepen cooperation with Horizon Robotics so Carizon can use Horizon’s AI foundation model to develop its own end‑to‑end driving AI.
  • Carizon and VW plan an integrated hardware‑software approach that includes an in‑house system‑on‑chip effort targeted at roughly 500–700 TOPS to process large sensor data streams in real time.
  • Volkswagen says it aims for technical series readiness for Level‑3 conditional driving in China in H2 2027, but actual customer activation will depend on Chinese regulatory approvals for higher automation.
  • Before pursuing Level‑3, VW will roll out a Level‑2++ (hands‑off, eyes‑on) system in China in the near term, with the first such models expected this year using the China Electronic Architecture (CEA) and CSP platform.
  • The move follows Cariad’s recent split with Bosch on Level‑3 work and marks a broader strategy to use China as an innovation hub while seeking new partners such as Wayve and exploring limited export of China‑developed systems.