Is there a Volkswagen levitating car like this? No. The hovering is computer generated fakery, but it is still fun to watch.
The “People’s Car” project allowed Internet users in China to post ideas about cars of the future. From the 119,000 ideas received. three vehicle and technology concepts were produced and are now on display at the 2012 Beijing auto show. Watch this brave a Chinese couple hover around the city in the first (computer animated) test drive of this Volkswagen concept car. – link
The levitating car shown in the video clip displayed above currently exists only as a concept that was given form for display at an automobile show in China; a working model of the vehicle as shown in the video does not exist. A second clip makes it clear that the original video was the product of the filmmaker’s art (and some digital trickery) created to surprise the originator of the concept by seemingly bringing her idea to life… more at Snopes