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Volkswagen wins China Level 3 road-test licence while Xpeng gains Level 4 robotaxi approval

A robotic hand grasping black keyboard keys in a minimalist setting.
Illustrative photo.Photo by Tara Winstead on Pexels

Volkswagen and Xpeng have secured permission in China to run higher levels of automated driving on public roads, both companies announced on Monday. Volkswagen has begun Level 3 road tests in Hefei, while Xpeng can now operate Level 4 robotaxi demonstrations across Guangzhou.

Volkswagen begins gathering road data in Hefei

Volkswagen Group China said on Weibo that it had been granted a Level 3 road-test licence in Hefei. Testing and data collection on real roads there have already started. The company is aiming for Level 3 technology readiness in 2027.

Xpeng shifts robotaxis towards real operations

In a WeChat post, Xpeng said its robotaxi service, Xpeng Yoyo, now qualifies for Level 4 demonstration operations citywide, moving it beyond technical testing. The vehicle is built on Xpeng's GX SUV and runs on four of the company's own Turing AI chips, rated at 3,000 TOPS.

Xpeng intends to act as a technology supplier rather than operate large fleets itself, and says it is in talks with several European ride-hailing platforms. Chief executive He Xiaopeng set a goal in August of carrying passengers without safety drivers in 2027, as reported by CnEVPost.

Approvals follow a freeze on robotaxi licences

The permits come after China froze new robotaxi licences following an incident involving Baidu in Wuhan. Against that backdrop, the two approvals indicate that supervised deployment on real roads is still being permitted.

Open questions

  • Will Xpeng carry passengers without safety drivers in 2027, as its chief executive has targeted?
  • Will China lift the freeze on new robotaxi licences?

Key facts

  • Volkswagen and Xpeng announced their approvals on Monday.

Sources & evidence