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Volkswagen Group China has received permission to test Level 3 automated driving on public roads in Hefei, supporting its goal of reaching technical maturity for planned series production in 2027. Xpeng has approval for Level 4 robotaxi demonstration drives across Guangzhou, initially offering access gradually through invitation codes. Neither development, by itself, confirms a full commercial launch.
Volkswagen Group China has received permission to test Level 3 automated driving on public roads in Hefei, while Xpeng has approval for Level 4 robotaxi demonstration drives across Guangzhou. The two approvals mark different stages of testing in China: Volkswagen is developing a system that still requires a driver ready to take control, while Xpeng’s demonstrations will test both robotaxi operation and the processes of running a ride service.
Volkswagen says it is testing its highly automated driving assistant in real-world traffic in Hefei and collecting data to advance development. The company’s stated goal is to reach the targeted technical maturity by 2027, when it plans to bring Level 3 technology to series production. The work uses technology developed with local partner Horizon Robotics through the Carizon joint venture.
At SAE Level 3, a vehicle can perform the driving task under defined conditions. The driver may take their hands off the wheel and look away from the road, but must be ready to resume control when the onboard system prompts them. The source report says this handover may typically be required within about ten seconds; drivers are not free of the responsibility to respond.
Xpeng’s approval covers Level 4 robotaxi demonstrations in Guangzhou, allowing the company to test services across the city. Xpeng says the work will examine more than the driving technology: it will also test ride requests, vehicle dispatch, passenger transport and responses to exceptional situations. Access will initially be introduced gradually through invitation codes, according to the report.
Two Different Routes to Automated Driving
The approvals highlight how automated-driving development is advancing on separate tracks. Volkswagen’s Hefei tests are a step toward a planned production vehicle with Level 3 assistance; Xpeng’s Guangzhou work is a demonstration of Level 4 robotaxi service operations. These levels describe different responsibilities for the vehicle and the human operator, so the approvals should not be read as equivalent permissions or evidence that either service is broadly available.
For Volkswagen, public-road testing can expose the system to traffic situations that simulations and controlled tests may not capture in the same way. The company says the data will support development toward its 2027 target. For Xpeng, citywide demonstrations can test operational questions that matter to a passenger service, including how rides are accepted and dispatched and how unusual situations are managed.
The distinction matters to consumers and regulators. A Level 3 driver must be prepared to take over when asked, while Xpeng’s Level 4 demonstrations are being framed as robotaxi operations. The source does not specify the operating conditions, safety-driver arrangements, service boundaries or other restrictions for Xpeng’s demonstrations, so the approval alone does not establish how passengers will experience the rides.
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Hefei Tests and Guangzhou Robotaxis
Volkswagen’s stated 2027 production goal gives the Hefei testing a development purpose, rather than making the approval a launch announcement. The company says local development will draw on its GAIA 2.0 AI world model. Volkswagen reports that the model can run daily simulations covering around five million kilometres, based on data from 30 million real-world traffic scenarios. Those figures are company-reported descriptions of simulation capacity and source data; they do not establish how the system performs on public roads.
Xpeng’s robotaxi effort has also been moving toward external demonstrations. The report says that in the first half of October, the company introduced its Yoyo robotaxi brand and opened registration for initial external users in China. The Guangzhou approval adds permission for demonstration drives, but the report describes a gradual, invitation-based rollout rather than unrestricted public access.
Xpeng says it does not plan to operate large robotaxi fleets itself. Instead, it intends to provide vehicles, software and AI technology and work with partners, with potential income from hardware sales, technology services and commissions. The company also says it is in discussions with European mobility platforms about international expansion; the source does not identify partners or provide a timetable.
“GAIA 2.0 can perform daily simulations covering around five million kilometres, based on data from 30 million real-world traffic scenarios.”
— Volkswagen, as described in the report
Limits of the New Approvals
The available report does not give the detailed terms of either approval, including testing conditions, geographic restrictions or safety oversight. It also does not specify the number of vehicles involved, the demonstration schedule, fares, or when access beyond invitation-code users might begin. The Level 4 label alone does not answer what operational limits apply to Xpeng’s Guangzhou rides.
Volkswagen’s 2027 target remains a company plan, not a confirmed launch date. The report gives no test results from Hefei or evidence that the system has already met the target technical maturity. Likewise, Xpeng’s demonstration approval is not confirmation of a full commercial robotaxi service. Further details from the companies or local authorities would be needed to establish the approvals’ exact scope and the next deployment milestones.
Testing Before Wider Rollout
Volkswagen is expected to continue collecting public-road data in Hefei as it develops the Level 3 system toward its planned 2027 production goal. The report does not give a timetable for further testing milestones or identify when the company will announce whether the technology is ready for series production.
Xpeng plans to begin Guangzhou access gradually through invitation codes and use the demonstrations to refine service procedures and fleet management. The next useful updates would clarify how many users and vehicles are involved, what operating limits apply, and whether the company moves from demonstrations to a commercial service. Its discussions with European mobility platforms may also develop, but no agreement or expansion schedule is confirmed in the source material.
Key Questions
What did Volkswagen receive approval to do in China?
Volkswagen Group China received permission to test Level 3 automated driving on public roads in Hefei. The testing is intended to support development toward a company target of series production in 2027.
What is the difference between Volkswagen’s Level 3 testing and Xpeng’s Level 4 demonstrations?
At Level 3, the vehicle can drive under defined conditions, but the driver must be ready to take control when prompted. Xpeng’s Level 4 approval concerns robotaxi demonstrations; the report does not state the detailed operating restrictions or safety arrangements for those rides.
Can the public book an Xpeng robotaxi in Guangzhou now?
The report says access will initially roll out gradually through invitation codes. It does not confirm open public booking, fares or a date for wider access.
Does Volkswagen’s approval mean Level 3 cars will be on sale in 2027?
No. Volkswagen has stated a goal of bringing Level 3 technology to series production in 2027, but the public-road testing approval is a development step, not confirmation of a final launch date or customer availability.
Will Xpeng operate its own large robotaxi fleet?
Xpeng says it does not plan to operate large fleets itself. The company says it intends to provide vehicles, software and AI technology and work with partners, but the report does not name partners or detail a commercial operating plan.
Source: electrive.com
