VW’s FIT laboratory capable of simulating extreme environments is expected to enter operation by mid-2026
On November 25, Volkswagen China Technology Co. (VCTC) opened a new batch testing facility in Hefei, completing the core expansion project.
For the first time outside its German headquarters, Volkswagen Group now has full capability to develop, validate, approve and industrialize new vehicle platforms and key technologies.
Volkswagen said it has established a fully integrated R&D system in China, covering end-to-end processes from software development and hardware testing to whole-vehicle verification.
The new batch testing facility spans roughly 100,000 square meters and is equipped with more than 100 advanced laboratories, supporting software–hardware integration, battery and powertrain testing, and vehicle-level verification, forming a closed-loop development system.
According to Volkswagen, the new center will shorten vehicle development cycles by about 30%. Localized concept-stage development is expected to reduce supply chain and manufacturing costs, with some key models achieving up to 50% cost reduction.
Development efficiency for localized functions such as intelligent cockpits and advanced driver assistance systems will also improve.
A Function Integration Test (FIT) laboratory capable of simulating extreme environments is expected to enter operation by mid-2026, supporting multi-scenario testing.
The expansion comes as competitive pressure intensifies. Volkswagen Group delivered 2.176 million vehicles globally in the third quarter, down 7.1% year on year. Sales in China fell 15% to 711,500 units.
Volkswagen China CEO Ralf Brandstätter said strengthening local R&D is essential to meeting China’s high-demand market.
He added that the Hefei R&D center will reinforce Volkswagen’s strategy of “in China, for China,” improve product iteration efficiency and help stabilize market performance.
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