In response to heightened safety concerns following a fatal crash, China’s Ministry of Industry and Information Technology has mandated automakers to eliminate the use of terms like “smart driving” and “autonomous driving” in their advertising for driving assistance features.
This regulatory crackdown seeks to instill tighter scrutiny over the deployment and promotion of advanced vehicle technologies.
The ministry’s directive, revealed in a meeting attended by representatives from nearly 60 automakers including Huawei, stems from an investigation into a tragic incident involving Xiaomi’s widely sold SU7 sedan.
The crash, which saw the vehicle engulfed in flames after striking a roadside pole at high speed, reignited debates over the safety of Advanced Driving Assistance Systems (ADAS).
A new rule issued in February prohibits manufacturers from implementing driving-related software updates remotely on vehicles already purchased by customers without explicit government approval. Automakers must now conduct comprehensive tests to validate reliability before proceeding with such technological upgrades.
This regulatory tightening comes amid fierce competition within China’s vast automobile market, where manufacturers have launched numerous models boasting “smart” capabilities to gain a competitive advantage in an ongoing price battle.
Companies like BYD have intensified this market dynamic; in February, BYD introduced over 20 cost-effective models with complimentary driving assistance features, prompting competitors to follow suit.
Nonetheless, regulatory bodies are concerned by the rapid growth trajectory of the electric vehicle sector, managing transitions to reduce potential hazards associated with EV technologies, such as battery-induced fires.
The interim challenge for the industry lies in increased costs and potentially slower tech advancement, yet it might also purify the market, driving overdue consolidation in an industry beset by overcapacity.
