Volkswagen AG has announced it will integrate intelligent voice AI assistants into its vehicles for the Chinese market, allowing users to control various car functions through voice commands. The German automaker stated that starting in the second half of this year, all models based on its China-specific in-car system will feature the smart voice assistant.
Thomas Ulbrich, Chief Technology Officer of Volkswagen China, explained that the in-car AI assistant will incorporate technologies from companies such as Tencent, Alibaba, and Baidu. The goal is to create a tool with "personality" that can anticipate driver needs. The AI utilizes a locally trained large language model, with all computations performed on the vehicle's system without relying on cloud connectivity.
The announcement was made as Volkswagen unveiled four new models in Beijing, including the ID.UNYX 09, which was jointly developed with Chinese electric vehicle maker XPeng over two years. This move is part of Volkswagen's strategy to regain market share in China, where the auto industry is rapidly transitioning from internal combustion engines to electric vehicles.
In recent years, Volkswagen has made significant investments in China, including taking stakes in XPeng and automotive chip manufacturer Horizon Robotics. As a result of these partnerships, Volkswagen's models in China will no longer use Nvidia chips. An electric SUV set to begin deliveries by the end of June will feature XPeng's Turing chip, while a high-end in-car chip project with Horizon Robotics is still under development.
The German automaker also announced that starting next year, it will use agent AI technology to create a unified system for driving assistance and cockpit control. In November last year, Volkswagen revealed that its Hefei development center can independently develop and approve technologies for the Chinese market, shortening product launch cycles.
A report released by the German Chamber of Commerce in China highlighted that German automakers have significantly increased their research and development investments in China over the past two years, aiming to serve both local and global markets. Nearly 80% of surveyed automotive companies stated that after localizing R&D in China, costs were lower compared to R&D in Germany, while about 43% reported that their innovation speed increased by more than 40%.
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