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

Introduction: Hefei’s Ambitions in Autonomous Mobility

The city of Hefei (合肥 Héféi), capital of Anhui Province, has emerged as a significant hub for electric vehicle (EV) and intelligent mobility development in China. Over the past five years, Hefei has attracted major names in the EV ecosystem — from NIO’s global headquarters to a dense network of battery and component suppliers. Now, the city is making an aggressive push into the next frontier: autonomous driving. In the first half of 2025, Hefei announced a major expansion of its Autonomous Driving Test Zone, a move that signals the city’s intent to become a national leader in Level 4 (L4) autonomous vehicle (AV) commercialization.

This article examines the scope of the test zone expansion, the key companies involved, the regulatory backdrop, and what this development means for both domestic and foreign autonomous driving technology firms looking to operate in the region.

Test Zone Expansion: Size and Scope

Hefei’s Autonomous Driving Test Zone was first established in 2022 as a pilot program covering approximately 50 square kilometers in the Hefei High-tech Industrial Development Zone (合肥高新技术产业开发区, Héféi Gāoxīn Jìshù Chǎnyè Kāifā Qū). The zone was designed to support testing of connected and autonomous vehicles (CAVs) on open roads under real traffic conditions. The expansion, approved by the Anhui Provincial Department of Transport in late 2024 and rolled out through mid-2025, more than doubles the previous area to roughly 120 square kilometers.

The expanded zone now encompasses portions of the Baohe District (包河区 Bāohé Qū) and the Hefei Economic and Technological Development Zone (合肥经济技术开发区, Héféi Jīngjì Jìshù Kāifā Qū), linkages that connect key industrial parks, commercial districts, and arterial expressways. The network includes more than 200 kilometers of test roads, including 45 kilometers of urban expressway, 90 kilometers of arterial city roads, and roughly 65 kilometers of suburban and residential routes. This variety of road typologies allows participating firms to test a wide spectrum of driving scenarios — from high-speed lane changes on the expressway to pedestrian-dense urban intersections and narrow residential street navigation.

A newly built Vehicle-to-Everything (V2X) infrastructure layer underpins the zone. Over 350 Roadside Units (RSUs) have been deployed along the test routes, providing low-latency communication between vehicles and infrastructure. Edge computing nodes at 12 distributed locations process real-time sensor fusion data. The zone also features a centrally operated cloud management platform that aggregates test data, monitors vehicle telemetry, and enforces geo-fencing rules to ensure safety.

Participating Companies: NIO, Baidu, and Pony.ai Lead the Charge

Three companies — NIO (蔚来 Wèilái), Baidu (百度 Bǎidù), and Pony.ai (小马智行 Xiǎo Mǎ Zhì Xíng) — have been granted primary test permits for the expanded zone. Each brings a distinct strategic focus.

NIO. As Hefei’s flagship EV manufacturer, NIO has the deepest local footprint. Its global headquarters and two large manufacturing plants are situated in the Hefei Economic and Technological Development Zone — now partially inside the expanded test area. NIO is using the zone to validate its NIO Autonomous Driving (NAD) system, targeting L4 capability for its executive sedan, the ET7, and its upcoming sub-brand models. The company has deployed a fleet of 60 test vehicles equipped with its Aquila Super Sensing system, which includes 33 high-performance sensors per vehicle (11 cameras, 5 millimeter-wave radars, 12 ultrasonic radars, 2 lidar units, and a high-precision GNSS+IMU module). NIO’s road-test hours in Hefei have exceeded 15,000 hours since the expansion began.

Baidu. Through its Apollo autonomous driving platform, Baidu has been testing in Hefei since 2023. The expansion allows Baidu to increase its Robin Ride (萝卜快跑 Luóbo Kuài Pǎo) robotaxi fleet operating in the zone from 20 vehicles to 50 vehicles. Baidu’s test focus is on mixed-traffic operation, where its robotaxis share roads with human-driven cars, e-bikes, and pedestrians — a scenario it considers the hardest remaining challenge before large-scale commercialization. Baidu reports that its Hefei robotaxis have completed over 8,000 paid service trips within the zone as of June 2025.

Pony.ai. The California-headquartered autonomous driving startup, which maintains a major R&D center in Guangzhou, received its Hefei test license in early 2025. Pony.ai is deploying its seventh-generation autonomous driving system in a fleet of 25 Toyota bZ4X electric SUVs. Unlike NIO and Baidu, Pony.ai is focusing on cross-district routes — longer trips that connect Hefei’s high-tech zone to Hefei Xinqiao International Airport (合肥新桥国际机场, Héféi Xīnqiáo Guójì Jīchǎng) and Hefei South Railway Station (合肥南站, Héféi Nán Zhàn). These routes simulate the inter-urban travel patterns that could form the backbone of a future autonomous ride-hailing service across the Yangtze River Delta region.

Several other companies have also obtained secondary permits or limited-scope test authorizations, including WeRide (文远知行 Wén Yuǎn Zhī Xíng), AutoX (安途 Āntú), and local Anhui-based startup SmartDrive Technologies (智驾科技 Zhìjià Kējì).

Regulatory Framework: Anhui’s Progressive Approach

The test zone expansion operates under the “Anhui Province Autonomous Vehicle Testing and Application Management Measures (Trial),” a regulatory framework introduced by the Anhui Provincial Department of Industry and Information Technology in 2024. These measures are notable for several features that distinguish Anhui’s approach from other provinces:

Multi-tiered licensing. Companies must pass a graduated series of assessments before being permitted to operate at higher autonomy levels or on more complex road types. The tiers are: (1) closed-track validation, (2) open-road testing with a safety driver, (3) open-road testing with a remote safety operator, and (4) commercial pilot operation without a safety driver. NIO and Baidu have both reached Tier 3 status in Hefei; Pony.ai operates at Tier 2.

Data security and localization. The regulations mandate that all vehicle sensor data collected within the test zone must be stored on servers physically located within Anhui Province. Data cross-border transfers require explicit approval from the provincial cyberspace administration. This clause has direct implications for foreign autonomous driving companies, which we discuss below.

Insurance and liability. Test operators must carry liability insurance of at least 10 million RMB per vehicle. In accidents involving autonomous vehicles, the operator — not the vehicle manufacturer — bears primary liability unless a manufacturing defect is proven. This shifts the risk burden onto testing companies and encourages robust safety validation before on-road deployment.

Safety operator requirements. For Tiers 1 and 2, a licensed safety driver must be present in the driver’s seat at all times. Safety drivers must complete a 40-hour training program certified by the Hefei Transport Bureau, covering emergency takeover procedures, system-failure response, and local traffic law. As of mid-2025, over 200 safety drivers have been certified under this program.

Impact on Foreign Autonomous Driving Tech Companies

The Hefei test zone expansion presents a mixed picture for foreign autonomous driving technology firms. On one hand, the zone’s growing scale and sophisticated V2X infrastructure make it one of the best-equipped testing environments in China — on par with Beijing’s Yizhuang (亦庄 Yìzhuāng) zone and Guangzhou’s Nansha (南沙 Nánshā) district. The availability of diverse road types, real traffic conditions, and a supportive municipal government creates an attractive proposition for any company serious about L4 development in China.

On the other hand, several structural barriers remain significant. The data localization requirement described above means that foreign companies — whether Chinese subsidiaries of global firms or joint ventures — must invest in local server infrastructure and navigate a potentially lengthy approval process for any cross-border data transfers. For companies like Tesla, which has been pursuing Full Self-Driving (FSD) approval in China, the Hefei zone could serve as a testbed, but only if Tesla establishes the required data storage within Anhui and obtains the necessary licenses. As of June 2025, no major foreign automaker beyond the Chinese operations of Volkswagen (through its Cariad subsidiary and its joint venture with Horizon Robotics) has secured a test permit in the Hefei zone.

Additionally, the graduated licensing system, while promoting safety, imposes a slower timeline for new entrants compared to more permissive testing environments seen in the United States (e.g., California’s DMV AV testing permits) or Germany. Foreign companies entering the Hefei zone should budget for a 6–12 month ramp-up period to progress through the first two licensing tiers before meaningful on-road data collection can begin.

There is also a geopolitics dimension. The U.S. Department of Commerce’s export controls on advanced semiconductors and certain lidar components have made it harder for American autonomous driving firms to source the highest-performance computing hardware for their China-based test fleets. NIO’s test vehicles, for instance, use NVIDIA DRIVE Orin chips — a product now subject to export restrictions for certain Chinese entities. While NIO’s test program predates the most restrictive measures and benefits from grandfathered supply arrangements, latecomers may face supply-chain constraints that limit their ability to deploy sensor-rich test vehicles in the Hefei zone.

Despite these headwinds, the opportunity is real. Anhui Province has signaled interest in attracting foreign autonomous driving companies through its “Anhui Gateway” investment promotion initiative, which offers tax incentives, streamlined licensing, and infrastructure support for qualifying foreign firms that establish R&D operations in the province. For companies willing to navigate the regulatory landscape, Hefei offers access to a rapidly expanding domestic market, a skilled engineering talent pool, and a government that appears genuinely committed to autonomous mobility as a strategic priority.

Test Zone Specifications: Data Overview

Participating Companies: Fleet and Focus Areas

Conclusion: Strategic Implications for the Region

The expansion of Hefei’s Autonomous Driving Test Zone represents more than a local infrastructure project — it is a deliberate strategic move by Anhui Province to position itself at the center of China’s autonomous driving ecosystem. By linking the test zone to existing EV manufacturing strength (NIO’s production base) and AI capabilities (Baidu’s Apollo platform and Pony.ai’s R&D operations), Hefei is building a vertically integrated autonomous mobility cluster that can compete with established hubs like Beijing, Shanghai, and Guangzhou.

For foreign autonomous driving companies, the message is clear: Hefei is open for business, but on its own terms. The data localization rules and graduated licensing system demand patience and investment, but the payoff is access to a world-class testing infrastructure, a supportive regulatory environment, and a rapidly growing market. As autonomous driving technology matures and regulatory frameworks converge, Hefei’s early-mover advantage in this domain could make it a template for other second-tier Chinese cities seeking to attract high-tech investment.

Looking ahead, several milestones will be worth monitoring: the issuance of the first Tier 4 (driverless commercial pilot) permits in Hefei, expected by the end of 2025; progress on the planned Hefei-Wuhu (芜湖 Wúhú) cross-city autonomous corridor, which would connect two of Anhui’s largest economic centers; and the entry of a major foreign automaker — perhaps Tesla or Volkswagen — into the Hefei testing ecosystem. Each of these developments would mark a significant step toward the broader vision of large-scale autonomous mobility in the Yangtze River Delta region and beyond.

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