Volkswagen Group has completed the final expansion stage of its China-based research and development operations with the opening of its first Test Workshops in Hefei. The new facilities, part of the Volkswagen Group China Technology Company (VCTC), consolidate software, hardware, and full vehicle validation under one roof. This development allows the company to conduct end-to-end product development and validation for the Chinese market.
The workshops make VCTC Volkswagen’s most comprehensive R&D hub outside Germany. The facility includes over 100 laboratories spread across approximately 100,000 square meters. These labs support software-hardware integration, battery and powertrain testing, as well as complete vehicle-level validation.
Oliver Blume, CEO of Volkswagen Group, stated: “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 responsible for China and Chairman and CEO of Volkswagen Group China, 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. 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.”
VCTC serves as a key part of Volkswagen’s “In China for China” approach by integrating core R&D units focused on electric vehicles (EVs), intelligent features, and connectivity tailored specifically for Chinese consumers. It also coordinates with joint venture partners on technology projects while working within China’s rapidly evolving tech ecosystem.
The company reports that its collaboration with CARIAD China at VCTC has resulted in delivery of its first zonal E/E architecture designed specifically for Chinese customers within 18 months—a process enabled by a new Software-Defined-Vehicle approach that shortens overall vehicle development cycles by 30 percent. Early supplier integration during concept phases can reduce costs by up to half on select projects.
Thomas Ulbrich, CTO of Volkswagen Group China and CEO of VCTC commented: “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.”
Volkswagen highlights that safety, durability, and reliability remain central priorities in their design philosophy—attributes further reinforced through expanded testing capabilities at Hefei such as a Battery & Powertrain Integration Testing Center capable of evaluating up to 500 battery systems per year on criteria including performance longevity and environmental resilience.
Additionally, advanced facilities like an Electromagnetic Compatibility laboratory ensure electronic reliability while durability test benches simulate various global driving conditions within controlled environments.
Looking ahead, Volkswagen plans continued investment at Hefei; mid-2026 will see a Functions Integration Test Laboratory become operational—one of only two such facilities within Volkswagen globally—to simulate extreme environmental conditions as part of ongoing efforts toward intelligent mobility solutions.
