Beijing/Hefei, November 27, 2025 — Volkswagen Group has reached a historic milestone with the completion of its new Test Workshops at the Volkswagen Group China Technology Company (VCTC) in Hefei. For the first time in the company’s history, full vehicle platforms and core technologies can now be developed, validated and prepared for market launch entirely outside Germany — a transformative step that significantly accelerates the Group’s global innovation capabilities.
With this development, VCTC becomes the Group’s most advanced R&D centre beyond its home market and the only facility dedicated exclusively to electric, intelligent and connected mobility. The expansion brings together software, hardware and full-vehicle validation under one roof, enabling faster decision-making, seamless integration and optimal alignment with the expectations of Chinese customers.
A New Benchmark in Global R&D Capabilities
Volkswagen has added more than 100 state-of-the-art laboratories across 100,000 m² in Hefei, covering everything from battery and powertrain analysis to software–hardware integration and platform-level testing. The new facilities complete VCTC’s evolution into a full end-to-end development hub capable of supporting every stage of vehicle creation outside Germany.
Oliver Blume, CEO of the Volkswagen Group, highlighted the significance of this achievement:
“Our ‘In China for China’ strategy continues to gain momentum. At our development centre in Hefei, China, we have now created all the conditions necessary to develop, test and locally manufacture the next generation of intelligent connected vehicles. 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 consolidate our position in the world’s largest automotive market with the clear goal of becoming the global technology driver of the automotive industry.”
Ralf Brandstätter, Member of the Board of Management of Volkswagen AG responsible for China, and Chairman and CEO of Volkswagen Group China, emphasised the competitive implications:
“China is the world’s most competitive automotive market, and our customers here expect rapid innovation and flawless quality. By expanding our footprint in Hefei, we are strengthening our ability to respond quickly to local needs and to shape technologies directly where they will be used. This step deepens our commitment to China and ensures that our future products reflect the preferences and expectations of Chinese customers from the very beginning.”
Delivering “China Speed” with the China Electronic Architecture
A central outcome of the Hefei expansion is the acceleration of the Group’s China Electronic Architecture (CEA), Volkswagen’s first zonal E/E architecture designed specifically for the Chinese market. Co-developed with CARIAD China and delivered in just 18 months, CEA establishes a highly flexible, software-defined foundation for next-generation vehicle technologies.
The integration of early supplier involvement and localised development allows Volkswagen to shorten the overall development cycle by 30%. In key programs, costs can be reduced by up to 50%. The architecture also ensures seamless deployment of digital cockpit functions, advanced driving assistance systems (ADAS), and whole-vehicle over-the-air updates.
Thomas Ulbrich, CTO of Volkswagen Group China and CEO of VCTC, noted the dramatic increase in efficiency:
“The new workshops give our engineering teams an entirely new level of integration. We can now run software, hardware, and full-vehicle validation processes in parallel, shorten decision loops, and bring innovations to maturity much faster. This environment enables us to push forward next-generation intelligent-vehicle technologies with high precision and efficiency.”
Engineering Excellence with Global Validation Capability
The new Test Workshops reinforce Volkswagen’s commitment to its core values of safety, durability and reliability — qualities long associated with Volkswagen DNA.
The Battery & Powertrain Integration Testing Centre can evaluate up to 500 battery systems per year, covering safety, longevity, thermal management and environmental resilience. Meanwhile, the Platform & Module Testing Centre includes advanced EMC facilities to ensure electronic reliability, as well as full-vehicle durability tools capable of simulating global driving conditions from within the workshop.
Combined with the nearby City Test Track, Volkswagen now operates a complete design–build–test–validate cycle directly in China, tightly connected to its global R&D network.
Building a Future-Proof Mobility Ecosystem in Hefei
Volkswagen Group continues to deepen its technical footprint in Hefei. The forthcoming Functions Integration Test (FIT) Laboratory — scheduled for mid-2026 — will be one of only two in the Group capable of simulating extreme climatic conditions to validate next-generation intelligent-vehicle functions.
These expanding capabilities strengthen Volkswagen’s competitive position in the Chinese market, while also enabling the export of China-developed technologies to global regions such as ASEAN and the Middle East.
As the automotive industry shifts towards software-defined vehicles and intelligent mobility, the Hefei hub positions Volkswagen Group as a faster, more flexible and deeply customer-focused innovator — one that can respond at “China Speed” to the world’s most dynamic and demanding market.
