VW wants to give drivers in China eyes-off driving, the step Tesla says it will skip. Volkswagen Group China said on Monday, Oct. 26, 2026 that it has a Level 3 road-test permit in Hefei, Anhui province, and that real-road testing and large-scale data collection are underway. VW is targeting L3 technology readiness in China in 2027.
What the permit does, and doesn't, allow
- A road-test permit lets VW test conditional automated driving on designated roads. It doesn't approve L3 cars for sale, CnEVPost and Electrek noted.
- VW didn't disclose the models covered, the test routes or the fleet size.
- The software comes from CARIZON, VW's driving-tech joint venture with Horizon Robotics, in which VW invested about €2.4 billion for a 60% stake. VW said in July that L3 deliveries could start as early as the second half of 2027.
- VW China holds its first Technology Day in Hefei on Wednesday, Oct. 28.
The competition
China's industry ministry gave its first conditional L3 product approvals in December 2025 to Changan's Deepal SL03 and BAIC's Arcfox Alpha S. GAC's Hyptec and XPeng already hold L3 test permits, Electrek said. With L3, the automaker is responsible for the driving while the system is engaged. Tesla's FSD is still a Level 2 system everywhere it's sold, China included, and Tesla has talked about going straight to Level 4.
