Chinese authorities have banned automakers from using terms such as “smart driving” and “autonomous driving” in advertising to describe driver-assistance features, tightening scrutiny over advanced driving technologies following a fatal accident involving a Xiaomi electric vehicle earlier this year.
The Ministry of Industry and Information Technology (MIIT) outlined the new advertising restrictions during a closed-door meeting with around 60 automakers, according to a transcript seen by Reuters and confirmed by one of the attendees. The ministry also reminded automakers of regulatory requirements published in February regarding the use of over-the-air (OTA) software updates to modify driving-related systems.
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The regulatory action comes in response to a deadly crash involving Xiaomi’s SU7 sedan in March. Preliminary findings indicated the vehicle collided with a roadside pole at high speed shortly after the driver switched from assisted to manual control, raising public concerns over the safety of such systems.
Under the updated rules, automakers must no longer roll out OTA upgrades to driving assistance systems in vehicles already delivered to customers without prior regulatory approval. Companies are now required to conduct extensive testing to verify the safety and reliability of any updates and obtain clearance from relevant authorities before release.
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Suppliers of driving assistance systems, including Huawei, which provides such technologies to several automakers in China, were also present at the MIIT meeting. The new restrictions arrive as competition in the sector intensifies, with many carmakers introducing budget models equipped with advanced features in a bid to gain market share amid a prolonged industry price war.
Automakers such as BYD, Leapmotor, and Toyota have recently launched affordable electric models touting driver-assistance capabilities as a key differentiator. However, analysts warn that stricter oversight could increase compliance costs and slow the pace of technological adoption. At the same time, the measures may help streamline China’s overcrowded auto industry, which has struggled with overcapacity.
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The regulatory move is part of a broader effort by Chinese authorities to improve safety and quality standards across the rapidly growing electric vehicle sector. EV and hybrid sales surpassed half of total vehicle sales in the country late last year, a milestone reached earlier than expected.
Source: Reuters