ISLAMABAD (PEN) : China’s auto industry is rapidly advancing assisted-driving technology, seeking to outpace foreign competitors and meet growing consumer demand for innovative vehicle features. However, Beijing is sending a clear message to domestic manufacturers: accelerate development, but prioritize safety.
Regulatory Response Following Fatal Xiaomi Crash
In response to a March accident involving a Xiaomi SU7 sedan that resulted in three fatalities shortly after the driver resumed control from the assisted-driving system, Chinese regulators are finalizing new safety standards for driver-assistance technologies. The incident heightened government scrutiny over the promotion and capabilities of such systems.
Authorities aim to prevent automakers from overstating system abilities while maintaining momentum in technological innovation. The challenge lies in crafting regulations that safeguard consumers without hindering China’s competitive edge in the global automotive market.
Gradual Approach to Autonomous Driving
China currently permits assisted-driving systems that can steer, brake, and accelerate under certain conditions, requiring the driver’s constant attention. Consequently, marketing terms like “smart” and “autonomous” are prohibited. Upcoming rules will focus on hardware and software that monitor driver awareness and readiness to take control.
To develop these guidelines, regulators enlisted Dongfeng and Huawei, inviting public feedback through a month-long consultation that concluded recently.
Ambitious Level 3 Deployment Plans
Beijing is pushing for rapid deployment of Level 3 assisted-driving systems, which allow drivers to divert attention from the road under specific scenarios. State-owned automaker Changan was slated to begin Level 3 validation tests in April, but these were paused after the Xiaomi accident. Plans remain to resume testing this year, with a target to approve China’s first Level 3 vehicle by 2026.
Market Trends and Industry Competition
Level 2 systems—offering automated vehicle following and basic urban driving assistance—are increasingly common in China. Tesla’s Full Self Driving and Xiaomi’s features are among popular offerings. Automakers like BYD have made Level 2 capabilities standard and free across most models. Research firm Canalys estimates over 60% of new cars sold domestically this year include Level 2 functions.
Global Context and Liability Concerns
China’s push for assisted-driving technology mirrors its prior efforts to dominate electric vehicle production. The government has endorsed nine automakers for public self-driving trials. Unlike some Western markets, Chinese regulators are increasing liability risks for manufacturers and parts suppliers if their systems fail and cause accidents, following models adopted in countries such as Britain.
At the Shanghai auto show in April, Huawei unveiled a Level 3 system tested over 600 million kilometers in simulations, showcasing its readiness for highway deployment. Geely’s Zeekr brand introduced the luxury SUV 9X, featuring Level 3 software prepared for mass production pending regulatory approval.
In contrast, established foreign manufacturers like Mercedes-Benz and Volkswagen are advancing driver-assist features but have yet to cross into Level 3, citing high safety costs and regulatory uncertainties.
Mercedes-Benz CTO Markus Schaefer noted, “It’s a moving target,” referencing fluctuating costs related to chips, computing power, and the additional safety requirements for Level 3 systems.
