Volkswagen Opens Its First Full-Cycle Development Hub in China
Volkswagen has completed its new 100,000 m² Hefei Test Center, giving the Group full end-to-end vehicle development capabilities in China for the first time and cutting development cycles by 30%.
Sophia Bennett
Volkswagen Group has completed the final expansion stage of its new development and testing hub in Hefei, Anhui province, marking a historic milestone: for the first time, the company can fully develop, validate and prepare new vehicle platforms for market launch outside Germany.
The Volkswagen Group China Technology Company (VCTC) now integrates over 100 state-of-the-art laboratories across 100,000 m², combining software–hardware testing, battery and powertrain validation, as well as full-vehicle verification under one roof.
Full-cycle development “In China for China”
According to the company, the new capabilities will shorten development cycles by up to 30% and accelerate the rollout of the Group’s China Electronic Architecture (CEA) — a zonal E/E platform tailored specifically to local customer needs.
“Our ‘In China for China’ strategy continues to gain momentum. We have created all conditions to develop, test and locally manufacture the next generation of intelligent connected vehicles.”
VCTC is the Group’s most comprehensive R&D hub outside its home market and is dedicated exclusively to electric, intelligent and connected vehicles. It integrates decision-making processes locally and coordinates closely with joint-venture R&D units.
Responding to the world’s most competitive market
“Chinese customers expect rapid innovation and flawless quality. By expanding in Hefei, we strengthen our ability to respond quickly to local needs and shape technologies directly where they are used.”
The new Test Workshops bring together software, hardware and full-vehicle validation processes, allowing engineers to make faster decisions and roll out new features more efficiently. This includes digital cockpit systems, ADAS functions and whole-vehicle OTA upgrades.
Battery, powertrain and durability testing
Volkswagen’s Battery & Powertrain Integration Testing Center can test up to 500 battery systems per year, evaluating performance, lifetime, safety and environmental resilience. A full-vehicle durability bench simulates global driving conditions, while the EMC laboratory ensures the reliability of electronic systems.
In 2026, the Group will add the Functions Integration Test (FIT) Laboratory, one of only two in the world, to simulate extreme environments and further boost next-generation intelligent-vehicle development.
Building a future-ready foundation
The Hefei hub plays a central role in supporting Volkswagen’s ambitions in the world’s largest automotive market. With localized engineering, early supplier integration and new SDV workflows, the cost of developing new models can be reduced by up to 50% in some projects.
Volkswagen says these investments lay the groundwork for becoming the industry’s “Global Automotive Tech Driver” as competition intensifies in China’s rapidly evolving EV segment.