An aerial drone photo taken on May 16, 2024 shows the city test track of Volkswagen China Technology Company (VCTC) in Hefei, east China's Anhui Province. [Photo/Xinhua]

Volkswagen China Technology Company (VCTC), Volkswagen Group's largest research and development (R&D) center outside Germany, held a groundbreaking ceremony for phase III of the R&D center and unveiled the City Test Track (CTT) on Thursday in Hefei, capital of east China's Anhui Province.

Covering an area of about 110,000 square meters, the phase III project is slated for completion by 2027, with the experimental workshop expected to be operational by 2025.

The expanded R&D center will facilitate R&D work on new energy vehicle (NEV) platforms, complete vehicles, parts and components, as well as hardware and software integration and testing, according to the VCTC.

The CTT focuses on performance testing and functional verification of intelligent connected vehicles, making it the Volkswagen Group's first test track of its kind in China.

Covering an area of nearly 200,000 square meters, the CTT boasts an array of testing facilities and tracks. After it is fully operational, R&D engineers can conduct real-time testing and adjustments on new models, accelerating the iteration speed of software and hardware development.

"The groundbreaking of phase III and the commencement of operations at the City Test Track are significant milestones. The CTT will soon begin testing technologies and applications for our new models, while the new building will further empower our R&D decisions for the future," said Thomas Ulbrich, CEO of the VCTC.

With an investment of around 1 billion euros, the VCTC was put into operation in January 2024.