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Hefei – German automaker Volkswagen has signed an agreement to test and develop smart mobility solutions in the Chinese megacity of Hefei. The partnership will focus in particular on autonomous driving solutions.

The city of Hefei in the Anhui province, which is home to around eight million people, aims to become a state-of-the-art, fully connected smart city. One way it hopes to achieve this through a new partnership with Volkswagen.

According to a press release, the smart city partnership will give the German automaker the opportunity to test new technologies, business models and products in a connected smart city environment. In addition, Volkswagen will develop smart mobility solutions with a specific focus on autonomous mobility services, including self-driving vehicles or robotaxis and autonomous fleet management. The partnership will also examine ride hailing and car sharing.

“Volkswagen Group China is already exciting millions of Chinese customers with a wide range of vehicles,” said Stephan Wöllenstein, CEO Volkswagen Group China. “With this cooperation, we demonstrate that we are working hard to take a leading role in the field of smart mobility solutions in the Chinese market as well.”

China plays a central role in Volkswagen’s decarbonisation programme, according to the company. By 2028, more than half of the 22 million electric cars planned by the automaker will be produced in China, and its goal is to deliver around 1.5 million electrified vehicles, most of them fully electric, to customers by 2025.