Investment Education

(Reuters) - Volkswagen (ETR: VOWG_p )’s CARIZON, a joint venture between its software subsidiary Cariad and China’s Horizon Robotics, has developed the carmaker’s first in-house automated driving system, it said on Thursday.

As carmakers race to provide advanced assisted driving features in China’s highly competitive and software-driven market, Volkswagen will present the technology at next week’s Shanghai Auto Show, where others from Mercedes to Huawei will also showcase the latest developments in their assisted driving software.

China’s industry ministry this week issued stricter rules for carmakers on advertising and rolling out driving assistance features, prompting a pivot in marketing by auto show exhibitors from touting cutting-edge technologies to emphasising their safety and urging caution among consumers.

Volkswagen’s new system will offer so-called Level 2+ driving, which allows drivers to take their hands off the wheel in certain conditions while still keeping their eyes on the road, in a Volkswagen brand model coming out this year, it said.

A more advanced version of the system will be available in its entry-level cars from 2026, it added.