The $180 million investment is the biggest single investment in Mobvoi which has been backed by Google and Sequoia.
Mobvoi is valued at over $1 billion.
Mobvoi was founded by ex-Google employee, John Hopkins graduate, Li Zhifei who also has a partnership with Google to market the Ticwatch smart watch.
Mobvoi developed its ‘Ticmirror’ – a smart rearview mirror that provides navigation, search, instant messaging, and on-board infotainment through voice command.
“We want to enable voice interaction and personalised services and accelerate driverless cars,” says Zhifei.
VW has a 16.4% share of the China car market.