Anhui Expands Autonomous Vehicle Testing to 5 Cities — Regional EV Strategy Gains Momentum

On March 12, 2025, Anhui Province announced the expansion of autonomous vehicle (自动驾驶, Autonomous Driving, zìdòng jiàshǐ) public road testing from 2 to 5 cities, adding Bengbu, Ma’anshan, and Xuancheng to the existing hubs of Hefei and Wuhu. The initiative brings total designated test roads to 520km and licensed autonomous vehicles to 235 units as of Q1 2025, positioning Anhui as China’s third-largest provincial autonomous vehicle testing zone behind Beijing and Guangdong.

The expansion reflects Anhui’s ambition to lead China’s smart connected vehicle (智能网联汽车, Intelligent Connected Vehicle, zhìnéng wǎnglián qìchē) ecosystem. For foreign executives evaluating China market entry, the move signals both opportunity and complexity: while Anhui’s centralized infrastructure planning reduces deployment friction, regulatory variations across the 5 newly opened cities demand careful legal structuring. This article unpacks what the expansion means for foreign EV and AV companies active in or considering the Anhui corridor.

From 2 to 5 Cities: The Scale of the Testing Expansion

Previously, autonomous vehicle testing in Anhui was concentrated in Hefei and Wuhu, where 150km of roads and 80 licensed vehicles operated under provincial oversight since 2022. The new expansion triples road coverage to 520km and increases vehicle licenses by 194 percent, with Bengbu contributing 120km of highway testing routes, Ma’anshan adding 80km of urban mixed-traffic roads, and Xuancheng providing 70km of rural and suburban corridors.

The rollout timeline is aggressive: phase one (Q2 2025) opens basic road access for Level 3 and Level 4 autonomous vehicles in all 5 cities. Phase two (Q4 2025) introduces V2X (Vehicle-to-Everything) infrastructure on 300km of roads, supported by a 2.8 billion RMB provincial investment fund. Phase three (2026) aims for cross-city interoperation, allowing vehicles licensed in one Anhui city to operate across the entire 5-city network without re-approval.

This phased approach directly addresses a pain point for foreign companies: the fragmented certification processes between Chinese cities. Anhui’s unified permit system is modeled on similar frameworks in Shanghai and Shenzhen but goes further by integrating with the province’s existing 新能源汽车 (New Energy Vehicle, NEV, xīn néngyuán qìchē) supply chain — a competitive advantage given Anhui hosts major NEV plants for NIO, BYD, Chery, and Volkswagen Anhui.

Strategic Rationale: Why Anhui Is Doubling Down on Autonomous Driving

Anhui’s autonomous vehicle expansion is not an isolated technology play — it is a direct extension of the province’s broader EV industrial strategy. In 2024, Anhui produced 1.2 million NEVs, accounting for 12.4 percent of China’s total NEV output. The province’s EV supply chain includes 2,800+ component suppliers, 7 battery gigafactories, and 4 major OEM assembly plants. By integrating autonomous driving testing into this ecosystem, Anhui aims to capture the next layer of value: autonomous driving software, sensor hardware, and mobility services.

Provincial government documents obtained by Anhui Gateway indicate a target of 30 percent of NEVs sold in Anhui to be equipped with Level 3+ autonomous driving capability by 2028, up from an estimated 6 percent in 2025. To support this, the 2.8 billion RMB fund allocates 1.2 billion for roadside sensor infrastructure (LiDAR, cameras, and edge computing nodes), 800 million for cloud-based simulation platforms, and 800 million for safety validation and cybersecurity certification.

For foreign companies, this creates a specific opportunity: Anhui is actively seeking international partners for sensor calibration, functional safety testing (ISO 26262/ISO 21448 compliance), and V2X communication standards alignment. Several European Tier-1 suppliers (including Bosch and Continental, both with existing Anhui operations) have already applied for testing permits in the newly opened cities.

What This Means for Foreign EV and AV Companies Operating in China

Foreign companies evaluating the 5-city expansion face three critical considerations: legal entity structure, data compliance, and operational costs. Under current regulations, foreign-invested enterprises (FIEs) must establish a 外商独资企业 (Wholly Foreign-Owned Enterprise, WFOE, wàishāng dúzī qǐyè) in China with a registered business scope that explicitly includes autonomous driving testing services. While Hefei and Wuhu have streamlined WFOE setup to 15 business days, the newly added cities — particularly Bengbu and Xuancheng — lack dedicated foreign investment service desks, potentially extending setup to 30–45 days.

Data compliance is the more complex layer. China’s cross-border data transfer regulations require that all autonomous driving data (including maps, sensor logs, and traffic video) collected during testing in the 5 cities must be stored on domestic servers with geographic redundancy within Anhui province. Foreign companies must deploy local data centers or use approved cloud providers (e.g., Alibaba Cloud’s Hefei region or Huawei Cloud’s Wuhu node). Failure to comply risks fines of up to 50 million RMB or revocation of testing permits.

Operationally, the 5-city expansion reduces cost per test kilometer by an estimated 22 percent compared to Shanghai’s Jiading testing zone, primarily due to lower road usage fees and faster permit approvals. Anhui charges 0.8 RMB per kilometer for autonomous vehicle road use, versus 1.2–1.5 RMB in Shanghai and 1.0 RMB in Beijing. However, companies must factor in an additional 15–20 percent logistics cost for transporting vehicles between the decentralized test sites.

Competitive Positioning vs. Other Provinces

To contextualize Anhui’s new position, the table below compares testing conditions across China’s major autonomous vehicle hubs as of Q1 2025.

The table reveals Anhui’s core value proposition: low cost and planned interoperability. While Beijing and Shanghai have larger absolute road networks and vehicle fleets, Anhui’s cross-city unified permit system is unique among Chinese provinces. For foreign companies testing long-distance autonomous trucking or intercity robotaxi services, Anhui’s 5-city network offers a test bed that more closely mirrors real-world operational conditions than single-city zones.

Key Timelines and Regulatory Milestones

Foreign companies should track three specific deadlines. First, April 30, 2025: application deadline for phase one testing permits in Bengbu, Ma’anshan, and Xuancheng. Late applications are deferred to phase two (October 2025), delaying market entry by 6 months. Second, September 2025: Anhui’s provincial government is expected to release the “Autonomous Vehicle Data Security Implementation Guidelines for Foreign-Invested Enterprises,” which will detail data classification and cross-border transfer protocols for the 5-city network. Early engagement with the Anhui Cyberspace Administration is advisable. Third, December 2025: the deadline for existing WFOEs in Hefei and Wuhu to update their business scopes to include cross-city operations, or risk permit reapplication in the 3 new cities.

Foreign executives should also note that Anhui is piloting a “regulatory sandbox” for Level 4 autonomous trucks on the 120km Bengbu highway segment. Companies participating in this sandbox receive expedited safety approval (45 days vs. standard 90 days) and reduced insurance bond requirements (5 million RMB vs. 10 million RMB). The sandbox is limited to 15 vehicles total, with 5 slots reserved for foreign-invested enterprises. Anhui Gateway understands that 2 of those 5 slots have already been committed, leaving 3 available as of March 2025.

NEXT STEPS

1. Review Anhui’s WFOE setup guide. If you plan to establish a testing entity in one of the 5 cities, the legal structure requirements differ by city. Read our detailed Anhui WFOE Setup Guide for city-by-city timelines and costs.

2. Assess your data compliance readiness. The 5-city expansion imposes Anhui-specific data storage and cross-border rules. Use our Autonomous Vehicle Data Compliance Checklist to evaluate gaps before applying for testing permits.

3. Evaluate the regulatory sandbox opportunity. Only 3 foreign-invested slots remain for the Bengbu highway Level 4 autonomous truck pilot. Contact our Sandbox Application Support Service to expedite your application before the April 30 deadline.

— Anhui Gateway —
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