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Volkswagen completes major R&D expansion in China

November 27, 2025


Abstract : With the inauguration of new test workshops on Tuesday, Volkswagen Group China Technology Company (VCTC) has completed the core expansion of its R&D center in Hefei, capital of east China's Anhui Province, establishing it as Volkswagen's first and largest integrated R&D base outside Germany with full-process vehicle development and validation capabilities.

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A drone photo taken on June 7, 2024 shows an exterior view of Volkswagen (Anhui) Automotive Company Limited in Hefei, east China's Anhui Province. (Xinhua/Guo Chen)

HEFEI, Nov. 26 (Xinhua) -- With the inauguration of new test workshops on Tuesday, Volkswagen Group China Technology Company (VCTC) has completed the core expansion of its R&D center in Hefei, capital of east China's Anhui Province, establishing it as Volkswagen's first and largest integrated R&D base outside Germany with full-process vehicle development and validation capabilities.

Volkswagen Group China said that this milestone means that Volkswagen has now established a complete end-to-end R&D system in China, achieving effective full-chain integration covering software development, hardware testing and complete-vehicle validation.

Covering an approximate area of 100,000 square meters, the new test workshops are equipped with over 100 advanced laboratories, featuring key capabilities such as software and hardware integration, battery and powertrain testing, and complete-vehicle-level validation.

The new facilities will shorten the overall vehicle development time directly by 30 percent, the company 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," said Ralf Brandstaetter, chairman and CEO of Volkswagen Group China.

VCTC began operations in January 2024. Over the years, Volkswagen has built a base in Hefei, covering the complete value chain from new energy vehicle (NEV) R&D and manufacturing to NEV sales and services. 

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Keyword: Volkswagen R&D

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