China Bans 'Smart' and 'Autonomous' Driving Terms in Vehicle Advertising

China has barred automakers from using the terms "smart driving" and "autonomous driving" in advertisements for driving assistance features, as part of a broader regulatory crackdown on vehicle technology.

Credit: Xiaomi

The Ministry of Industry and Information Technology issued the directive during a meeting with nearly 60 automaker representatives on Wednesday. The move follows a fatal crash involving Xiaomi’s SU7 sedan in March, which raised public concerns over the safety of advanced driving assistance systems (ADAS).

Preliminary investigations revealed the Xiaomi vehicle was travelling at 97 kph when it struck a cement pole and caught fire, just seconds after the driver disengaged the ADAS.

The ministry confirmed the meeting in a brief statement, noting it clarified new rules published in February regarding over-the-air technology upgrades for intelligent and connected vehicles.

Under the updated regulations, automakers must now obtain government approval before deploying remote software updates to enhance ADAS features in vehicles already delivered to customers.

Credit: Xiaomi

Manufacturers are also required to conduct sufficient testing to verify the reliability of such updates before rollout.

Huawei, which supplies ADAS to at least seven brands including Audi in China, was among the companies present at the meeting.

The regulatory shift comes amid intense competition in the Chinese auto market, where automakers have been aggressively promoting ADAS-equipped models to gain an edge in a prolonged price war.

In February, BYD launched at least 21 low-cost models priced under USD 10,000, all featuring free "smart driving" capabilities. Other brands, including Leapmotor and Toyota, quickly followed with similar offerings.

Chinese regulators are also tightening oversight of electric vehicle battery standards to reduce fire and explosion risks, as the EV sector expands faster than anticipated.

Sales of electric and hybrid vehicles surpassed half of total vehicle sales in late last year, reaching a milestone ahead of government targets.

Industry analysts warned that the stricter rules could raise costs and slow technological progress, but may also prompt long-needed consolidation in China’s overcrowded auto industry.

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• China bans use of "smart driving" and "autonomous driving" in vehicle ads

• Automakers must get approval before remote ADAS updates

• Xiaomi crash in March triggered safety concerns

Source: REUTERS