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Volkswagen Group has announced plans to equip its new China-manufactured vehicles with advanced artificial intelligence “agents” starting in 2H26. The move, unveiled ahead of the Beijing Auto Show, represents a strategic shift to integrate next-generation digital capabilities as the German automaker seeks to close the technological gap with domestic Chinese competitors.

The new AI integration will be featured in vehicles built on Volkswagen’s China-specific electronic architecture. Unlike standard voice assistants designed for basic queries, these AI agents are intended to manage more complex decision-making tasks through a “highly intuitive and human-like interaction while maintaining robust protection of personal data,” according to company statements.

Ralf Brandstätter, CEO, Volkswagen China, outlined practical applications of the technology following a media event in Beijing. He noted that the system can autonomously search for highly rated restaurants in a specific area, make and confirm reservations, and then guide the driver to the destination while arranging parking.

"The car should be like a companion," stated Thomas Ulbrich, Chief Technology Officer, Volkswagen China. He described the assistant as a system designed to anticipate driver needs, incorporating a distinctive sense of “personality.” 

To ensure data security and responsiveness, the AI agent will operate locally within the vehicle rather than relying primarily on cloud-based processing. The system uses a large language model trained and stored on-board, incorporating technology from Chinese tech companies Tencent, Alibaba, and Baidu. This localized approach forms part of Volkswagen’s “In China, for China” strategy, which gives its Hefei research center greater autonomy to accelerate development cycles. 

The shift toward localized hardware is also reflected in the company’s supply chain strategy. Volkswagen has reduced reliance on Nvidia hardware for certain China-specific models. An electric SUV scheduled for launch in late June will use Xpeng’s Turing chip, while a separate chip development program with Horizon Robotics remains ongoing.

“We are back,” said Oliver Blume, CEO, Volkswagen, during the event, emphasizing that the new technological roadmap signals the company’s renewed commitment to the Chinese market.

Volkswagen is currently executing what it describes as its “largest electric mobility offensive in history” in China. The group plans to launch more than 20 new electrified vehicles by 2026, with a longer-term goal of introducing 50 new models by 2030. The strategy aims to reposition the company as a leader in intelligent electric vehicles (ICVs) rather than a traditional internal combustion engine manufacturer.

During a media night in Beijing, the company showcased four new vehicles illustrating this transition. Among the highlights was a new model in the ID.UNYX lineup, co-developed with Xpeng over a two-year period. Volkswagen also unveiled the first fully electric model in the ID.AURA series from the FAW-Volkswagen joint venture, featuring the locally developed China Electronic Architecture (CEA).