China authorizes new autonomous driving tests for Xpeng and Volkswagen

China has authorized Xpeng to operate autonomous taxis and granted Volkswagen a new license for level 3 autonomous vehicle testing. Xpeng's Yoyo taxis can transport passengers in Guangzhou, marking a step towards commercial operations. Volkswagen's joint venture with JAC Automobile Group will test vehicles in Hefei. The competition in autonomous vehicle development is intensifying between Chinese and American companies. Despite financial challenges, Xpeng aims for international expansion and sees strong growth potential in the autonomous taxi market, projected to reach $1 trillion by 2040.