Revolutionizing Smart Driving: China's Horizon Robotics and Volkswagen Join Forces

April 07, 2025,

Author: Researched and prompted by Soraima.

In a strategic move to strengthen its presence in China's rapidly evolving automotive technology sector, Horizon Robotics, a leading provider of energy-efficient computing solutions for smart vehicles, has extended its partnership with Volkswagen.

The collaboration aims to develop advanced driver assistance systems (ADAS) and autonomous driving (AD) technologies tailored specifically for the Chinese market. 

Formation of a Joint Venture

In October 2022, Volkswagen's software subsidiary, CARIAD, and Horizon Robotics announced plans to establish a joint venture in China, with CARIAD holding a 60% majority stake. The venture’s primary goal is to create integrated software and hardware solutions for ADAS and AD, enhancing system stability, reducing energy consumption, and providing scalable, cost-effective solutions for Volkswagen's battery electric vehicles (BEVs) in China. 

Video by Horizon Robotics

Strategic Investments and Technological Advancements

Volkswagen’s investment of approximately €2.4 billion highlights its commitment to strengthening its position in the Chinese automotive market. This collaboration focuses on integrating multiple functions onto a single chip, streamlining system architecture, and enhancing performance. This technological leap is expected to accelerate the deployment of automated driving features in Volkswagen’s vehicles, catering to the growing demand among Chinese consumers who increasingly view their cars as extensions of their living spaces. 

Market Context and Future Outlook

The partnership between Horizon Robotics and Volkswagen is part of a broader trend of foreign automakers embracing local technologies in China.

Companies such as Toyota, Nissan, and Hyundai are also collaborating with Chinese tech firms to remain competitive in the country’s dynamic automotive landscape. This shift is fueled by the rapid advancement of electric and smart vehicle technologies among Chinese carmakers.

As of April 2025, the collaboration continues to evolve, with both companies working towards integrating Horizon's Superdrive smart driving solution into Volkswagen vehicles. This initiative is expected to enhance the driving experience by incorporating advanced safety features and intelligent functionalities, meeting the growing demand for smart and connected vehicles in China.

The strategic partnership between Horizon Robotics and Volkswagen exemplifies a successful fusion of local innovation with global automotive expertise. By leveraging

Horizon’s cutting-edge technologies and Volkswagen’s extensive market presence, the collaboration is poised to deliver advanced smart driving solutions that resonate with the unique preferences of Chinese consumers.

This alliance not only strengthens Volkswagen’s position in the Chinese market but also contributes to the global advancement of automotive technologies. Learn more

References

• China's Horizon Robotics announces partnership with Volkswagen on advanced smart driving tech

• Volkswagen to strengthen regional development competence for autonomous driving in China through joint venture between CARIAD and Horizon Robotics

• New automated driving joint venture between CARIAD & Horizon Robotics

• 'Everything has changed': foreign auto groups embrace local technology in China

• Horizon Robotics and Volkswagen Collaborate on Creating a "Third Living Space" for Chinese Consumers