Automotive software development company CARIAD, subsidiary of German auto manufacturing giant Volkswagen Group, on Sept 2 officially launched in the Hongqiao International Central Business District's Minhang section in Shanghai – marking a significant step forwards in attracting leading global enterprises there.

Industry observers said it further underscored the Xinhong subdistrict's emergence as a prime destination for Fortune 500 companies to invest in and thrive there.

Founded in 2020, CARIAD boasts a global team of thousands of software developers, engineers and designers – all focusing on providing localized innovative software products and related digital services for Volkswagen in the Chinese market.

In the run-up to CARIAD's arrival, the Xinhong subdistrict provided premium services, with its investment promotions center offering one-on-one guidance and support on such matters as the corporate relocation and renovation approvals – ensuring a seamless settlement for the company.

The newcomer will aim to create a new hub connecting CARIAD's global software technology R&D efforts and become a new landmark for technological innovation.

The move is said to represent a new development phase for Volkswagen Group's new energy vehicles software R&D in Shanghai – and accelerates the cluster of the new energy industry in the Xinhong subdistrict.