Measuring And Testing
In China, for China: Volkswagen Completes Technology And Innovation Center in Hefei

2025-11-28

From

Stefanie Eckardt

| Translated by AI


2 min Reading Time

Volkswagen has completed the expansion of its technology and innovation center in Hefei, China, providing a base for the development of software and hardware as well as the validation of entire vehicle projects.

In China, for China is Volkswagen’s strategy, and with the full commissioning of the Technology and Innovation Center in Hefei, the group can now independently develop, validate, and produce new vehicle projects and technologies for the Chinese market. With the completion of the new test workshops, the Volkswagen Group China Technology Company (VCTC) has become the largest and most comprehensive research and development center of the group outside Germany, focusing exclusively on electric, intelligent, and connected vehicles. “China is the most competitive and innovative automotive market in the world. Our customers expect rapid technology updates while demanding the highest standards of quality and safety. That’s why we’re taking our development capabilities in China for China to the next level,” emphasizes Ralf Brandstätter, member of the Volkswagen Board for China and Chairman and CEO of Volkswagen Group China. “By expanding our capacities in Hefei, we are strengthening our ability to respond very quickly to local needs and bring technologies to market maturity directly where they will be used.”

Integration of Software And Hardware

In the now completed final expansion phase, over 100 laboratories have been created on an area of around 1,076,000 sq ft, offering testing capabilities for the integration of software and hardware, battery and powertrain tests, reliability tests of vehicle electronic systems, as well as the full validation of new vehicles and technologies.

The VCTC integrates key development units and decision-making processes for local vehicle and technology projects while coordinating development processes with the research and development units of the joint ventures. By deepening its integration into the local technology ecosystem, the VCTC can respond early to market-defining trends in China, such as digitalization and autonomous driving.

China Speed Essential

The fast development time plays a particularly important role in China and has already been demonstrated with the development of the China Electronic Architecture (CEA): After 18 months of development, VCTC and Cariad China delivered the first version of the new local zonal E/E architecture, specifically tailored to the requirements of the Chinese market, to the Volkswagen brand. According to the company, the completely new development process for software-defined vehicles reduces the overall vehicle development cycle by around 30 percent. Through local development structures and the early involvement of suppliers in the concept phase of new vehicles and technologies, costs for a new model can be reduced by up to 50 percent in certain key projects. Additionally, CEA enables seamless integration of digital cockpit functions, assistance systems, and comprehensive over-the-air updates at the vehicle level.

Pursuing Export Strategy

The VCTC plays a crucial role in the group’s internationalization strategy, as it aims to further boost its export activities from China to the ASEAN region and the Middle East. A locally optimized production and competitive supply chains help ensure that models manufactured in China can be cost-effectively exported to high-growth markets. This not only strengthens the group’s presence in these regions but also enables faster market introduction of vehicles tailored to international customer needs. In this context, the VCTC will also be capable of adapting products developed for China to the legal and customer-specific requirements of other world regions, such as ASEAN, the Middle East, and, prospectively, South America.

 (se)