China grants autonomous-driving permits to Xpeng, VW JV as race with Tesla heats up

China has issued new autonomous-driving permits to Xpeng and a Volkswagen joint venture, allowing demonstration operations of driverless taxis in Guangdong. This marks an acceleration in the commercialization race against Tesla, though the scope and timeline of full deployment remain unclear. The move signals regulatory support for domestic AV players and intensifies competitive pressure on foreign entrants.

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