EV Update: Autonomous Driving Test Zone Expands in Hefei — Tech Impact

Hefei is accelerating its position as a national leader in autonomous driving technology with the expansion of its Intelligent Connected Vehicle (ICV) test zone. The expansion, announced in Q3 2026, adds 120 km of urban roads and 45 km of highway segments to the existing test network, making Hefei’s ICV testing infrastructure one of the largest and most comprehensive in China outside of Beijing and Shanghai. This development carries significant implications for technology suppliers, automakers, and investors positioned in the Anhui ecosystem.

Expansion Details

The expanded Hefei Intelligent Connected Vehicle Test Zone (合肥智能网联汽车测试区, Héféi Zhìnéng Wǎnglián Qìchē Cèshì Qū) now encompasses over 350 km of test roads spanning six district-level administrative areas. The new segments include complex urban scenarios such as unprotected left turns, mixed traffic with non-motorized vehicles, tunnel approaches, and multi-lane roundabouts — conditions that test the limits of Level 4 autonomous systems.

Key infrastructure additions include 48 new roadside units (RSUs) equipped with 5G-V2X communication modules, 120 high-definition traffic cameras with edge computing processors, and 15 lidar-equipped traffic signal intersections. The total investment in Phase 3 infrastructure is reported at approximately CNY 860 million (USD 118 million), funded jointly by the Hefei municipal government and four anchor corporate partners.

Corporate Participants

Sixteen OEMs and autonomous driving technology companies are now licensed to test on Hefei’s expanded zone, including NIO (蔚来, Wèilái), BYD (比亚迪, Bǐyàdí), Volkswagen Anhui, Baidu Apollo (百度Apollo, Bǎidù Apollo), Pony.ai (小马智行, Xiǎomǎ Zhìxíng), WeRide (文远知行, Wén Yuǎn Zhī Xíng), and five domestic Tier-1 suppliers. Notably, NIO has secured exclusive test access to a 15-km “urban canyon” route in the Hefei Binhu New District — a dense high-rise corridor with challenging GNSS signal conditions that serves as a benchmark for urban autonomous navigation.

Pony.ai and WeRide have both announced plans to deploy robotaxi pilot services within the expanded zone by Q1 2027, targeting a combined fleet of 200 vehicles initially. Baidu Apollo, which already operates robotaxi services in Wuhan and Beijing, has committed to deploying its sixth-generation RT6 vehicles in Hefei for public ride-hailing trials starting in December 2026.

Technology Impact on Suppliers

The Hefei zone expansion creates immediate and measurable opportunities across the autonomous driving supply chain. The 48 new RSUs alone represent a procurement of approximately CNY 38 million for V2X communication module suppliers. The 120 HD cameras with integrated edge AI processors drive demand for both hardware manufacturers and chip designers.

Computing Hardware

Autonomous driving requires massive on-vehicle compute. Each Level 4 test vehicle in the Hefei zone carries an average of 2-3 onboard computers (domain controllers) with combined processing power of 500-1,000 TOPS. With 200+ test vehicles now operating in the expanded zone, the total onboard computing deployment represents approximately 120,000-200,000 TOPS of distributed AI compute — equivalent to a small supercomputing cluster.

Sensor Supply Chain

Hefei is already home to several sensor and component manufacturers that stand to benefit directly. Hesai Technology (禾赛科技, Hésài Kējì), which operates a manufacturing facility in Hefei, supplies lidar units to multiple OEMs testing in the zone. RoboSense (速腾聚创, Sùténg Jùchuàng) has also announced plans to establish a dedicated lidar calibration center in Hefei High-Tech Zone to support the increased demand.

Camera module suppliers including Sunny Optical (舜宇光学, Shùnyǔ Guāngxué) and OFILM (欧菲光, Ōufēi Guāng) are both evaluating additional production lines in Anhui to serve the growing ADAS and autonomous driving market. Industry estimates suggest that camera module procurement from Hefei-based test programs could reach CNY 200-300 million annually by 2028.

Regulatory Framework and Permitting

Anhui Province has established a streamlined permitting process for autonomous driving tests. Companies must apply through the Anhui Department of Industry and Information Technology (安徽省经济和信息化厅, Ānhuī Shěng Jīngjì Hé Xìnxīhuà Tīng) and meet specific safety requirements including remote monitoring capabilities, minimum insurance coverage of CNY 5 million per vehicle, and a certified safety driver with 100+ hours of autonomous driving training.

The expansion also introduces China’s first provincial-level “cross-zone interoperability” agreement, allowing vehicles registered in Hefei’s test zone to operate on test roads in Wuhu and Xuancheng without separate registration. This three-city network, totaling 520 km of connected test roads, represents a significant step toward province-wide autonomous driving deployment.

Investment Implications

For foreign investors and technology companies evaluating entry into China’s autonomous driving market, the Hefei zone expansion signals several actionable trends. First, the provincial government’s willingness to fund CNY 860 million in Phase 3 infrastructure demonstrates sustained policy commitment — autonomous driving is not a pilot program but a strategic priority for Anhui. Second, the participation of 16 OEMs indicates a critical mass of testing demand that will require expanded local supply chains.

Third, the cross-zone interoperability with Wuhu — home to Chery’s autonomous driving R&D center — creates a unified testing corridor that rivals Beijing’s Yizhuang zone in scope. Companies providing cybersecurity testing services, data annotation, simulation software, and sensor calibration will find growing demand from the 16 participating OEMs and their suppliers.

Comparison with Other Test Zones

Action Items for Technology Suppliers

Companies in the autonomous driving supply chain should consider the following actions in response to the Hefei zone expansion. First, establish a local technical support presence in Hefei — the 16 OEMs testing in the zone require on-the-ground engineering support for sensor calibration, software integration, and data collection. Second, seek qualification as a preferred supplier to the zone’s shared infrastructure procurement program, which handles RSU, camera, and lidar procurement centrally. Third, explore partnerships with Anhui-based universities including the University of Science and Technology of China (USTC, 中国科学技术大学, Zhōngguó Kēxué Jìshù Dàxué) and Hefei University of Technology (合肥工业大学, Héféi Gōngyè Dàxué), both of which operate autonomous driving research labs that feed talent into the zone’s network.

The Hefei ICV test zone expansion represents a concrete, funded, and accelerating opportunity in China’s autonomous driving ecosystem. With CNY 1.38 billion total infrastructure investment, 16 OEM participants, and cross-city interoperability already operational, Hefei has positioned itself as a serious contender in China’s autonomous driving landscape — and the technology supply chain that supports it.

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