VW Gets Level 3 Test Approval in China, Xpeng Starts Robotaxis

What Level 3 means

With Level 2 systems, which most new cars offer today, the driver must watch the road at all times. At Level 3 the car drives itself under defined conditions, for example on a motorway at limited speed. The driver may take their hands off the wheel and look away, but must take over when the car asks, usually within about ten seconds. In Europe, Mercedes-Benz and BMW already offer Level 3 systems on some models in Germany.

VW develops its system together with Horizon Robotics, a Chinese chip and software company, in the joint venture Carizon. The development uses VW's own AI model GAIA 2.0, which, according to the company, simulates about 5 million km of driving per day based on 30 million real traffic scenarios. VW says the technology could later allow higher levels of automation.

Xpeng's robotaxi plans

Xpeng's approval covers the full robotaxi service in Guangzhou: accepting a booking, sending a car, carrying passengers and handling unusual situations. Access will be opened gradually through invitation codes. The robotaxi brand, Yoyo, was presented in early October 2026. Xpeng does not plan to run large fleets itself. It wants to supply cars, software and AI technology to partners and is reported to be talking to European mobility platforms. Xpeng also works with Volkswagen on electronics for VW's Chinese models.

Why it matters in Europe

China is moving faster than Europe on automated driving approvals, and both VW and Xpeng plan to bring the technology to other markets. In Europe, Stellantis has announced plans for robotaxi tests in France with Wayve and NVIDIA from 2028. For drivers, Level 3 on the motorway is the step that will be noticeable first: it allows reading or using the screen in traffic jams, within the legal limits of each country.

More from the brands: Volkswagen and XPeng in the catalogue.