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Volkswagen Completes Hefei R&D Hub, Enabling Early Platform Development Outside Germany

VW localizes core engineering in Hefei to regain competitiveness against Chinese EV leaders through faster, cheaper development.

Overview

  • Volkswagen finished new test workshops at its VCTC site in Hefei, creating its most comprehensive R&D hub beyond its home market.
  • For the first time, the company can support early-phase development and full-platform validation outside Germany.
  • VCTC and Cariad China are rolling out the China Electronic Architecture tailored to local needs, with first deliveries expected within 18 months.
  • The facility spans roughly 100,000 square metres with more than 100 laboratories, including a center capable of testing up to 500 battery systems annually.
  • Volkswagen says its new process can shorten development by about 30% and cut costs by up to 50% in specific projects, and it plans to develop in China for export to regions such as the Middle East and Southeast Asia.