China grants Xpeng passenger-car autonomous taxi trials and Volkswagen new testing licence

Chinese regulators have authorized electric-vehicle maker Xpeng to operate passenger-car autonomous taxi demonstrations using its level-4 Yoyo vehicles in Guangzhou, Guangdong province, marking a precursor to large-scale commercial deployment. Simultaneously, Volkswagen’s partnership with JAC Automobile received a licence to test level-3 autonomous cars on public roads in Hefei, Anhui province, requiring a driver to intervene when prompted.

The companies will assess vehicle performance in real conditions and refine service models for potential rollout in other markets. These approvals come amid a tightening rivalry between Chinese and American firms, with Chinese operators already running autonomous taxi services in 11 cities versus ten in the United States, and the state aiming for widespread autonomous-vehicle use by 2030. Xpeng also disclosed plans to expand internationally and is in talks with European passenger-transport platforms, while confronting a sharp rise in first-half losses.