Volkswagen stock gains as China approves Level 3 road tests

Published on 11/04/2026 at 11:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Volkswagen stock gains as China approves Level 3 road tests in Hefei. The permit supports a broader push into software-led vehicle technology.

Volkswagen advances autonomous driving plans

Volkswagen Group China has secured approval for Level 3 road testing in Hefei.
The permit enables real-world testing and large-scale data collection under China’s latest safety framework.
Volkswagen is targeting Level 3 readiness in 2027 while expanding its own driver-assistance and chip technology.

Volkswagen AG, DE0007664039, Illustration mit AI erstellt.

Volkswagen Group China has secured a permit for Level 3 autonomous-driving road tests in Hefei, marking a step toward the automaker’s targeted 2027 readiness for the technology. The development comes as Volkswagen is tightening investment priorities after a weak third quarter and restructuring plans across the group.

The The Driven reported on Wednesday, November 4, 2026, that the permit allows Volkswagen to test autonomous vehicles in real traffic in Hefei and gather driving data at scale. The permit was granted under what Volkswagen described as a demanding Level 3 regulatory framework with updated safety requirements.

China becomes a technology testbed

The road tests build on Volkswagen Group China’s development of Hyper Sense 8, an in-house full-scenario Level 2++ driver-assistance system created through its joint venture with Horizon Robotics. Volkswagen is also using its GAIA 2.0 artificial-intelligence world model for safety simulations based on driving scenarios.

The company said the system currently runs simulations equivalent to five million kilometres of driving each day and uses up to 30 million scenario clips. Volkswagen aims to increase the daily simulation scale to 10 million kilometres as it works toward Level 3 capabilities.

Ralf Brandstätter, chief executive of Volkswagen Group China, said safety and reliability remain the priority in autonomous driving. The permit allows the company to test in real traffic and collect data at scale, he said, describing it as the next step toward Level 3 readiness.

Software ambition meets financial pressure

The technology push contrasts with the group’s immediate earnings challenge. Volkswagen reported a nine-month 2026 operating result of 0.1 billion euros, down from 5.4 billion euros a year earlier, while revenue slipped to 233.41 billion euros from 238.7 billion euros. The company’s investor-relations page says the group is responding with a future plan focused on improving profitability and controlling investment.

For investors, the Hefei permit offers a potential development platform in one of the world’s most competitive automotive markets, but it does not yet establish commercial availability or a financial contribution. Execution, regulatory progress and the cost of scaling the technology will determine whether the advance supports Volkswagen’s broader transformation.

The real-time quote of Volkswagen AG stock traded at 70.01 euros on Lang & Schwarz at 11:13 CET on Wednesday, November 4, 2026, 1.97 percent above the Xetra close of Tuesday, November 3.