Volkswagen will equip Chinese cars with artificial intelligence AI systems to advance the latest technology.
Volkswagen Group recently announced plans to equip new cars built for China with AI “agents” from the second half of this year, it said on Tuesday, as the automaker looks to catch up with the advanced technology it has to offer in the world’s biggest car market.
The German giant is struggling to compete with Chinese carmakers who are setting a faster pace on electrification, digital features, pricing and pace of development.
At an event in Beijing ahead of the start of the annual car show this weekend, Volkswagen said that from the second half of this year it will introduce “onboard AI agents” in vehicles that use the electronic architecture only in China.
This technology will allow “highly intuitive, human-like interactions” between the vehicle and driver while ensuring “strong personal data protection.”
The company said that unlike voice assistants that answer simple questions, AI agents can handle more complex tasks and decision-making processes.
Ralf Brandstatter, Volkswagen’s top executive in China, told Reuters after the event that with such technology, a car could search for the highest-rated restaurants in a certain area, and then make and confirm a reservation.
It can then bring the driver to the restaurant and arrange parking, he said.
Volkswagen is trying to position itself as a company with a China-specific electric and intelligent vehicle strategy rather than a legacy manufacturer with a strong internal combustion footprint in the country.
In what it calls its “biggest electric mobility offensive ever” in China, the group plans to launch more than 20 new electrified vehicles by 2030, bringing a total of 50 new models to market.
Volkswagen Group CEO Oliver Blume said at the event that the model launch and technology plans sent a clear message: “We are back”.
The automaker’s “in China, for China” strategy focuses on expanding local research and development capabilities, accelerating development timelines and deepening local partnerships.
Standing alongside Bloom, Yu Kai, CEO of Chinese automotive chip maker Horizon Robotics, said the deal built with Horizon will allow Volkswagen’s agentic AI technology to expand beyond the premium segment to the mass market.
