Volkswagen's Cariad launches subsidiary in China

One of the first ten Volkswagen autonomous-driving electric cars to be tested in early 2021 in Hefei, Anhui Province, Aug. 26, 2020. (Xinhua/Liu Fangqiang)

German carmaker Volkswagen Group's new software company Cariad on Thursday launched its first subsidiary outside of Europe in China, reported Chinanews.com.

Facing the biggest single market of Volkswagen, the Chinese team of Cariad will promote the development of customized software for local consumers. 

"China is one of the world's most exciting and promising markets," said Dirk Hilgenberg, Cariad's chief executive officer (CEO), noting that the launch of the China subsidiary is a reflection of the company's solid commitment to the Chinese market and consumers.

Chinese consumers are showing increasing demand for new features and new experiences, as China is now a world leader in terms of digital application and innovation, said Chang Qing, CEO of Cariad's subsidiary in China. The Chinese team allows the brand to more rapidly respond to local demands and expectations, developing and upgrading the products at a "China speed", Chang said, noting that the team will also work with other Chinese partners under the Volkswagen Group to provide consumers with software-oriented mobility solutions.

The China subsidiary will also work with the headquarter in Europe to develop a scalable software platform that applies to all Volkswagen brands, in a bid to meet specific needs of various markets. The platform is expected to be launched by around 2025, supported by Level 4 autonomous driving technology.

Striving to strengthen the R&D capability of the China subsidiary, Cariad is building up a nationwide R&D network gathering talents in cities such as Beijing, Shanghai, Chengdu and Hefei.