German automaker Volkswagen is accelerating the development and eventual rollout of its advanced autonomous driving technologies in China. The company announced this week that it has officially launched the pilot program for its long-planned autonomous driving travel service in east China's Anhui province.
Volkswagen Group China commemorated the launch of the pilot program with the installation of the first license plate for its new autonomous driving vehicles. The company is scheduled to conduct the first actual road test of the vehicle in September in the Haiheng Community in the city of Hefei.
The automaker will primarily be testing its autonomous driving vehicles within a 16-square-kilometer area within the city. The first batch of vehicles that will be deployed will be 10 fully-autonomous new energy vehicles, which will travel through an 80-kilometer stretch of road. The vehicles will be passing by high-traffic areas such as schools, parks, hospitals, shops and residential communities.
The first phase of the pilot program will not include passengers. Volkswagen clarified that it should be conducting tests with passengers on board sometime early next year. When the service is officially launched, Hefei residents should be able to hail the self-driving vehicles through their mobile apps.
Volkswagen Group China's executive vice-president, Weiming Soh, mentioned in a statement the rapid development of the company's autonomous driving platform is mostly thanks to the integration of its market-leading advanced software and hardware technologies. Hefei vice mayor, Wang Wensong, stated during Wednesday's launch that the program is a significant milestone for the city and its connected vehicle industry.
The launch of the pilot program is part of Volkswagen's wider strategy to accelerate its electrification. In May, the company announced that it plans to invest around $2.5 billion to accelerate its new energy development in China.
The majority of the investment will be used to increase the company's stake in its Chinese electric joint ventures. Volkswagen recently invested around 1 billion euros to increase its stake in its joint venture with JAC Motors from 50 percent to 75 percent. Meanwhile, the rest of the funds will be used to invest in new energy-related acquisitions and partnerships. Volkswagen also recently purchased a stake in Hefei-based battery supplier Gotion High-tech Co Ltd.
