In 2026, Volkswagen is set to launch the autonomous ID. Buzz AD, aiming to outpace Tesla in the robotaxi industry. This move comes as other competitors also enter the billion-dollar market.

In Germany, many rely on cars, especially in rural areas with limited public transport. While transitioning to electric vehicles is a step forward, it doesn't fully address transportation challenges. Privately owned electric cars still require resources, space, roads, and parking.

One solution could be a shift to robot taxis. Countries like the US and China have been testing self-driving cars and vans for years. However, Germany has yet to approve level 4 autonomous systems, which operate without a driver. Legal frameworks exist but widespread adoption is still distant.

Robotaxis by VW in 2026

Volkswagen has introduced the ID. Buzz AD, a level 4 driverless e-van that follows designated routes. The production model was unveiled in Hamburg, with plans for a 2026 rollout in Hamburg and Los Angeles, expanding later. VW aims to be a major supplier in Europe, with Uber already committing to purchasing thousands of e-vans.

With 13 cameras, five radars, and nine LiDARs, the ID Buzz AD surpasses Tesla's current plans. While Tesla eyes a robotaxi launch, Waymo leads the autonomous driving sector in the US. Amazon's Zoox and Chinese companies like Baidu and Pony.ai are also making strides in this market.

VW's Focus on Fleets and Partnerships

Volkswagen's e-van targets business customers, fleets, and transport associations, offering software solutions, booking apps, and maintenance services. Collaborations with transport authorities in Hamburg and Berlin are already in place, with plans to operate driverless cars in Europe and the US by 2026.

Despite initial costs, VW sees autonomous driving as a profitable future venture, with potential for significant revenue. Public funding and a coordinated strategy are essential for Germany to establish dominance in this evolving market.