SHANGHAI: China’s government has announced a ban on the use of two different terms to refer to advanced driver assistance systems, in an effort catch up with regulators overseas and bring more order to the world’s largest auto market. Industry officials were told of the new restrictions during a recent meeting led by the Ministry of Industry and Information Technology, according to a transcript reviewed by Reuters.
The regulatory action came after a fatal fire in March involving one of Xiaomi's best-selling SU7 sedans when it crashed into a pole at the roadside while travelling at 97 kph (60 mph). Early investigations showed that the car erupted into flames moments after the driver had switched over from his vehicle’s ADAS, sparking fears about whether such technology is fit for purpose.
The move would specifically clarify that carmakers cannot deploy remotely push out a patch to hone ADAS functions on already-sold vehicle without first getting permission from the government. Instead, the companies need to subject all new software updates to rigorous reliability testing and official approval.
Huawei, one of several major suppliers of ADAS technologies that includes Audi, went to the meeting and has not responded publicly. The shift comes as carmakers in China are fiercely competing to sell vehicles that offer “smart driving” capabilities, particularly given a price war. For example, BYD introduced more than 20 cheap models in February that provide free “smart driving” capabilities, which other automakers, such as Leapmotor and Toyota, copied.
China’s traffic safety authorities also cautioned that false or exaggerated advertising about assisted driving features could result in heavy fines, up to 10 times the advertising costs, or license revocations. Severe forms of misinformation leading to accidents or deaths are even punishable by law with imprisonment for up to two years.
Regulators are bolstering scrutiny of EV and hybrid technology, which now account for more than half the nation’s vehicle sales. They are also raising requirements for EV batteries to prevent risk of fire and explosion. Some industry experts warn that the new, tougher rules could raise costs for manufacturers and slow technological advances while encouraging consolidation in China’s overbuilt auto industry, which has been plagued by excess capacity. The automobile industry is considered an oligopoly, with a few major players dominating the market and influencing technological trends.
Looking ahead, the future of electric vehicles appears promising, as technological innovations and stricter regulations are shaping a more sustainable and competitive auto industry in China and beyond.
