China has introduced stricter guidelines for self-driving electric vehicles following a fatal crash involving a Xiaomi SU7, as the country’s level 2 driving automation enters a critical phase of widespread use.

The China Association of Automobile Manufacturers (CAAM) and the China Society of Automotive Engineers issued a joint statement urging carmakers to improve safety designs and implement effective driver warning systems.
The announcement follows a Xiaomi SU7 crash in Anhui province last month that killed three people. The vehicle was travelling at 116 km/h with its driver-assistance system engaged. Xiaomi said the system alerted the driver to take control two seconds before the car hit a concrete barrier.
The Ministry of Industry and Information Technology (MIIT) recently summoned representatives from 60 companies, instructing them to comply with regulations and avoid overstating the capabilities of driver-assistance systems.
MIIT also banned the use of terms such as “smart driving,” “advanced smart driving,” and “autonomous driving” in marketing materials for current systems.
Most self-driving systems in mainland China are classified as level 2 or L2+, which require drivers to keep their hands on the wheel and remain alert. Level 3 systems, which allow hands-off driving, are not yet legal in China.
Analysts said the Xiaomi crash highlights the widespread use of navigation on autopilot (NOA) and the lack of public understanding about its limitations.
David Zhang, general secretary of the International Intelligent Vehicle Engineering Association, said millions of drivers need education on proper NOA usage and must remain fully alert when the system is active.
The automobile association also urged carmakers to follow MIIT’s classification standards, avoid misleading advertising, and clearly inform consumers about system functions, correct usage, and emergency procedures.
The goal is to ensure users understand the difference between driver assistance and autonomous driving, and to prevent misuse of the technology.
China tightens EV safety rules after Xiaomi SU7 crash killed three
Carmakers told to avoid misleading terms like “autonomous driving”
Level 2 systems require drivers to stay alert and hands-on
Source: SCMP