China grants permits to VW joint venture, Xpeng as autonomous driving race intensifies

China has granted new autonomous-driving permission to electric vehicle (EV) maker Xpeng and a mainland joint venture of Volkswagen, intensifying the commercialisation race between China’s autonomous driving firms and US company Tesla.

Xpeng would now be allowed to conduct “demonstration operations” of its Yoyo driverless taxis in the capital city of southern China’s Guangdong province under a licence officially granted recently, the company said on social media on Monday.

The licence, which allows the robotaxis to carry paying passengers, is regarded as a final major test for fleet operators before winning regulatory approval for commercial operations.