The Chinese government has informed auto industry representatives that China is banning automakers from using the terms “smart driving” and “autonomous driving” when advertising driver assistance features and will tighten regulations related to these technological upgrades.
The decision was made by the Ministry of Industry and Information Technology during a meeting with nearly 60 automakers, this move comes in the wake of a fatal crash involving Xiaomi’s best-selling SU7 sedan in March, which raised widespread concerns about vehicle safety.
Preliminary findings showed that the Xiaomi car caught fire after hitting a concrete pillar on the side of the road at 97 kilometers per hour, seconds after the driver took control of the advanced driver assistance system.
Under the new Chinese government decision, automakers are no longer allowed to test and improve their advanced driver assistance systems via over-the-air software updates for vehicles delivered to customers without approval.
They are now required to conduct sufficient testing to verify the reliability of these systems and obtain regulatory approval before rolling them out.
Huawei, which supplies its advanced driver assistance systems to at least seven brands, including Audi in China, was among the companies that attended the meeting, according to the minutes. Huawei did not immediately respond to a request for comment.
This regulatory move comes as automakers rush to launch new models equipped with advanced driver assistance systems, promoting “smart driving” capabilities as a key selling point to fight a fierce price war that has stretched into its third year in the world’s largest auto market.
The Traffic Safety Research Center of the Chinese Ministry of Public Security announced that automakers who mislead consumers by fabricating or exaggerating assisted driving functions in advertisements could face fines ranging from five to ten times the advertising fee, or have their business licenses revoked, citing China’s Advertising Law.
The center added that falsely advertising assisted driving could constitute a violation of criminal law when it results in serious consequences, such as traffic accidents resulting in injuries.
It warned that perpetrators of such crimes could be sentenced to less than two years in prison.
Chinese regulators are tightening oversight of electric vehicle technology, as the industry grows faster than expected.
Electric and hybrid vehicle sales accounted for more than half of total vehicle sales late last year, a milestone achieved ahead of the target set by policymakers.
Auto analysts and experts have warned that tightening regulations will increase costs and slow the pace of technology development and adoption.
