Volkswagen Unveils Locally-Developed AI ADAS System at Auto Shanghai 2025, Fast-Tracking Smart Mobility in China

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Representational image. Credit: Canva

At Auto Shanghai 2025, Volkswagen Group has taken a monumental leap in automated driving by introducing its first self-developed, AI-powered Advanced Driver Assistance System (ADAS), designed entirely in China, for China. This milestone reflects the German auto giant’s unwavering commitment to its “In China, for China” strategy, aimed at building cutting-edge technologies tailored to the world’s largest automotive market.

Breakthrough in Automated Driving: Level 2++ and Beyond

Developed by CARIZON — a joint venture between Volkswagen’s software subsidiary CARIAD and Chinese AI leader Horizon Robotics — the new ADAS system has been engineered to master the unique and complex driving environments of China. The full-stack solution supports highly precise driving capabilities up to Level 2++, encompassing both highway and urban scenarios, and paves the road for future Level 3 autonomous functions.

Trained on the intelligent data platform “GAIA”, the system uses AI-driven analytics to process two terabytes of data per vehicle daily. With over 100,000 kilometers of test driving every day, GAIA significantly accelerates software development cycles — reducing AI verification times twentyfold compared to conventional platforms.

Mass-Market Ready: Intelligent Driving for All

The new ADAS technology will debut in a Volkswagen-brand model within 2025, with broader integration into compact segment vehicles based on the China-specific Compact Main Platform (CMP) starting in 2026. This move aims to democratize advanced driving functions, making them accessible even in entry-level vehicles.

“This rapid progress demonstrates the outstanding capabilities of our joint venture CARIZON and the success of our localized innovation approach,” said Ralf Brandstätter, Group Board Member for China and CEO of Volkswagen Group China. “We are developing at ‘China Speed’ — for our Chinese customers, with the highest standards in performance, safety, and quality.”

AI as the Driving Force: GAIA Platform Revolutionizes ADAS Development

GAIA, CARIZON’s proprietary AI-based data platform, stands at the heart of this innovation. Capable of collecting and analyzing massive volumes of driving data, it transforms connected vehicles into intelligent, predictive driving companions. GAIA enhances scenario-based learning with unprecedented speed and precision, enabling near-human driving intuition and significantly boosting vehicle safety.

Marcus Hafkemeyer, CEO of CARIZON, emphasized the technology’s swift development: “With a local team of 500 ADAS experts and the deep integration of AI, we’ve built a high-performance system in record time. Level 2+ ADAS will hit the roads this year, and Level 2++ with Urban Navigate on Autopilot (NoA) will follow in 2026 — laying the groundwork for Level 3 autonomy.”

Volkswagen’s Smart EV Transformation in Full Swing

Volkswagen Group also used Auto Shanghai 2025 to highlight its broader transformation in China. For the first time, the Group is unveiling an entirely new generation of smart electric vehicles under the Audi and Volkswagen brands, designed exclusively for Chinese consumers. The company plans to launch over 20 new energy vehicle (NEV) models by 2027, aiming for 30 fully electric models by 2030.

With expanded local R&D, enhanced digitalization, and shortened decision-making cycles, Volkswagen is positioning itself to lead the intelligent and electric mobility revolution in China.

Volkswagen Group at Auto Shanghai 2025

Visitors can witness the future of intelligent mobility at Volkswagen Group’s pavilion at Auto Shanghai 2025, where the company is showcasing its smart EV lineup and groundbreaking driving technologies tailored for the Chinese market.

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