VW Expands Horizon Partnership for L3 Autonomous Driving Push in China by 2027

On July 22, Volkswagen Group China and Chinese smart driving technology provider Horizon Robotics expanded their AI partnership through their joint venture CARIZON.

Under the agreement, CARIZON will leverage Horizon Robotics’ AI foundation model capabilities through a white-box licensing model to independently develop Volkswagen Group China’s unified AI driving solution, providing underlying support for future L3 and L4 autonomous driving technologies.

The deeper partnership marks Volkswagen’s further integration of China’s artificial intelligence capabilities into its global smart driving ecosystem.

In recent years, Chinese EV makers have accelerated smart driving development, with companies such as Huawei, XPeng, and Li Auto pushing end-to-end AI models and urban navigation-assisted driving into mass production. Traditional global automakers are facing growing pressure to strengthen software capabilities.

For Volkswagen, the Horizon Robotics partnership goes beyond a supplier relationship. It is also a key component of its “In China, For China” strategy.

Under the new technology framework, Horizon Robotics’ AI foundation model will work alongside CARIZON’s self-developed system-level chip C7H and GAIA world model data platform, covering the full intelligent driving pipeline from perception and decision-making to vehicle control.

The system is expected to support Volkswagen’s development of L3 and L4 autonomous driving capabilities, while also serving emerging scenarios such as passenger vehicles and Robotaxi applications.

By the end of 2025, CARIZON’s first advanced driver assistance system had already been installed on Volkswagen Anhui models including the ID. UNYX 07 and the updated ID. UNYX 06, enabling functions such as highway navigation assistance and memory parking.

CARIZON’s full-scenario advanced driver assistance solution has also entered mass production, with deployment planned from the third quarter of 2026 across seven new energy models from Volkswagen’s three joint ventures in China. The rollout will gradually expand to more models based on Volkswagen’s CEA electronic and electrical architecture.

Volkswagen expects its L3 autonomous driving solution for the China market to begin deliveries as early as the second half of 2027.

For Horizon Robotics, the expanded cooperation with Volkswagen represents another step in commercializing its AI technology.

On the business side, Horizon Robotics released its 2026 first-half earnings outlook on the same day. The company expects revenue from continuing operations to reach RMB 19.3B–20.8B ($285M–$307M), up 24.8%–34.5% year on year. Gross profit from continuing operations is expected to reach RMB 11.6B–13.7B ($171M–$202M), with overall gross margin remaining above 60%.