China has granted new autonomous-driving permits to electric vehicle maker Xpeng and Volkswagen's joint venture, intensifying the race to commercialize self-driving technology. Xpeng can now operate Level 4 robotaxis in Guangzhou, while VW has received a Level 3 road-test license in Hefei.
Xpeng's robotaxi service, Xpeng Yoyo, has been approved for Level 4 demonstration operations citywide in Guangzhou, allowing it to carry paying passengers. Riders will initially gain access through invitation codes, with coverage expanding gradually. Volkswagen Group China announced on Weibo that it has begun Level 3 road tests in Hefei, aiming for technology readiness by 2027.
The approvals signal a thaw after China suspended new robotaxi licenses in April following a Baidu robotaxi incident in Wuhan. A safety review was launched, and approvals resumed in July. Xpeng aims to carry passengers without safety drivers by 2027 and is in talks with European ride-hailing platforms. VW's China chief Ralf Brandstätter emphasized safety, stating, "We will never push technological progress at the expense of safety."
