Volkswagen to Invest $2.3 Billion in China Autonomous Driving Venture

VW is under pressure to improve its offering in China, which accounts for roughly 40% of its deliveries.

(Bloomberg) — Volkswagen AG will invest 2.4 billion euros ($2.3 billion) in setting up an autonomous driving joint venture with China’s Horizon Robotics Inc. to strengthen the automaker’s tech presence in its biggest market.

The new unit will develop automated and assisted driving systems for China, integrating numerous functions on one chip to save costs and lower energy consumption, VW said Thursday. The technology will be built for the carmaker’s battery-only models sold in China to accelerate innovation in a market where consumers increasingly pick local EV brands.