BEIJING: For the first time in Volkswagen Group’s history, new vehicle platforms and key technology can be fully developed and brought to market readiness with all approval processes outside Germany.
With the opening of the group's first test workshops in Hefei, Volkswagen Group China Technology Company (VCTC) has accomplished its final expansion stage, now bringing end-to-end development capabilities directly to the Chinese market.
The new facilities significantly expand the Group’s local R&D (research and development) strength and integrate software, hardware, and whole-vehicle validation under one roof — enabling faster decision-making, closer customer alignment, and accelerated rollout of next-generation technologies.
There are 100,000 sq metres of space with over 100 advanced laboratories at the VCTC.
The new facilities contribute directly to slash development time by 30%, accelerate the rollout of the group’s China Electronic Architecture (CEA), and deliver tailor- made digital cockpit features, advanced driving assistance system (ADAS) functions and over-the-air (OTA) upgrades for Chinese customers.
Volkswagen Group CEO Oliver Blume said, "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 strengthen our position in the world's largest automotive market with the clear goal of becoming the Global Automotive Tech Driver," said Blume.
Volkswagen Group China chairman and CEO Ralf Brandstätter said, "China is the world’s most competitive automotive market, and our customers here expect rapid innovation and flawless quality. This is why we are taking our development capabilities in China for China to the next level."
"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,” said Brandstätter.
Leveraging local development and early supplier integration during the concept phase of new cars and technologies, the cost of a new model can be reduced by up to 50% in specific key projects.
At the Battery and Powertrain Integration Testing Centre, engineers can test up to 500 battery systems per year.
Tests cover performance, lifetime, safety and environmental robustness, as well as E-Drive, thermal management, electronics and battery cell components.
The Platform and Module Testing Centre follows the same philosophy.
Its advanced Electromagnetic Compatibility (EMC) laboratory safeguards the reliability of vehicle electronics, while a full-vehicle durability test bench could simulate all global driving road conditions within the workshops.
Together with the City Test Track, Volkswagen Group has established a full design–build–test– validate cycle in Hefei.
VCTC CEO Thomas Ulbrich said, "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."
Volkswagen Group continues to expand the capabilities of Hefei.
The Functions Integration Test (FIT) Laboratory comes online in mid-2026 — one of only two in the Group — to simulate extreme environment conditions.
