China has banned the use of the terms 'smart driving' and 'autonomous driving' in advertisements by carmakers. Also, software updates related to driving functions in intelligent and connected vehicles can now be updated remotely only with prior regulatory approvals. The new directives were issued by the Chinese ministry of industry and Information Technology earlier this month.
This move comes in the aftermath of a crash involving Xiaomi’s SU7 electric sedan in March this year in which three women were killed. This crash has reignited public debate about the safety of intelligent driving systems. According to preliminary investigations the vehicle struck a concrete fencing pole at 97 kmph shortly after the driver disengaged the advanced driver assistance system (ADAS), which led to a fire.
The ministry had introduced a new set of rules in February this year governing over-the-air (OTA) software updates related to driving functions in intelligent and connected vehicles. The software updates cannot now be deployed without conducting thorough testing and securing regulatory approval. Prior to these new regulations the ADAS features could be updated remotely without prior clearance.
Earlier in April this year, the Chinese regulators had also issued much stricter guidelines for EV battery standards with a focus on reducing the risk of fires and explosions in the EV batteries.
The Chinese electric vehicle industry has grown faster than expected over the last three years. The sales of EVs and hybrids in 2024 constituted more than half of total vehicle sales. This milestone was achieved much ahead of policymakers' schedule.
The market feels the new stricter regulations and guidelines can increase the costs and slow the pace of technology development and adoption.