Volkswagen Group has completed the final expansion phase of its China Technology Company (VCTC) test center in Hefei, Anhui province, enabling the full development and validation of new vehicle platforms and key technologies locally. Spanning roughly 100,000 m² and housing more than 100 specialized laboratories, the facility brings together software–hardware integration, battery and powertrain validation, and whole-vehicle testing under one roof.
This local end-to-end capability marks the first time Volkswagen Group can take products from early concept through approval processes entirely outside of Germany. By consolidating development functions in Hefei, the Group expects to reduce vehicle development cycles by about 30%, accelerate the deployment of its China Electronic Architecture (CEA) and deliver customized digital cockpits, advanced driver-assistance features and over-the-air updates tailored to Chinese customers.
Oliver Blume, CEO Volkswagen Group: “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 of Volkswagen AG responsible for China, and Chairman and CEO of Volkswagen Group China: “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 is Volkswagen’s most comprehensive R&D hub outside Germany and the only center dedicated exclusively to electric, intelligent and connected vehicles. It integrates core development teams with decision-making authority for local projects and coordinates with joint-venture partners. Early supplier involvement and agile processes enable cost reductions of up to 50% on key programs.
Key test facilities include the Battery & Powertrain Integration Testing Center, which can cycle up to 500 battery systems annually through performance, safety, durability and thermal-management evaluations. The Platform & Module Testing Center offers electromagnetic-compatibility labs and full-vehicle durability benches that simulate global road conditions. A city test track completes a full design–build–test–validate loop in close collaboration with Volkswagen’s global R&D network.
Looking ahead, a new Functions Integration Test Laboratory scheduled for mid-2026 will simulate extreme environmental conditions, laying the groundwork for Volkswagen’s next generation of intelligent and connected mobility solutions.
Source: Volkswagen Group Press Releases
