China has banned automakers from using terms like “smart driving” and “autonomous driving” in advertisements for driving assistance feature, as announced by the Ministry of Industry and Information Technology (MIIT).

This regulation follows a March incident in which a Xiaomi SU7 sedan caught fire after a crash at 97 kph.

The fire occurred shortly after the driver disabled the vehicle’s advanced driving assistance system (ADAS), raising significant concerns over the safety of such technologies.

Under the new rules, automakers must obtain regulatory approval before deploying remote software updates for driving technologies in vehicles already sold to customers.

Additionally, they are required to perform extensive testing to ensure the reliability of these updates.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ China’s auto regulations evolve from growth focus to safety concerns

This safety-focused regulatory shift represents a significant evolution in China’s automotive policy strategy, which has historically prioritized rapid market growth.

China declared the auto sector a “pillar industry” in 1986, using supportive policies to build what became the world’s largest vehicle market by 2010 1.

The current crackdown on “smart driving” claims reflects a maturing market where regulators are increasingly concerned with consumer protection rather than just industry expansion, particularly as electric and hybrid vehicles now account for over 50% of new vehicle sales in China.

This regulatory trend mirrors the development path of other major auto markets like the US and EU, where early growth phases were followed by stricter safety and environmental regulations once the market reached maturity.

The increasingly stringent oversight of vehicle technology represents China’s acknowledgment that its automotive industry has outpaced regulatory frameworks, necessitating measures to restore consumer trust after high-profile incidents like the Xiaomi crash.

2️⃣ Affordable EVs with advanced features create regulatory challenges

China’s unique market dynamic, where companies like BYD have launched numerous affordable EVs with advanced driver assistance features, has accelerated the need for clearer marketing regulations.

In February, BYD introduced 21 models priced from less than $10,000 featuring “smart driving” capabilities, intensifying competition and prompting other manufacturers to follow suit with similar low-cost, feature-rich offerings 2.