China’s Ministry of Industry and Information Technology has issued a new directive banning automakers from using terms like “smart driving” and “autonomous driving” in advertisements promoting advanced driving assistance systems (ADAS).
The move is part of a broader regulatory push to tighten oversight of vehicle safety and software-based upgrades in the automotive sector.
The directive, communicated during a meeting with nearly 60 automotive companies, prohibits manufacturers from testing or upgrading ADAS features through over-the-air (OTA) software updates for vehicles already delivered to customers unless they receive prior government approval. Automakers must now conduct comprehensive testing to ensure reliability and obtain regulatory clearance before rolling out any such updates.
The renewed focus on safety and compliance follows a fatal accident in March involving Xiaomi’s SU7 sedan. Preliminary findings revealed the car struck a roadside pole at 97 km/h shortly after the driver took control from the ADAS, resulting in a fire.
Automakers have increasingly marketed ADAS as “smart driving” capabilities, using the term as a key selling point amid an intensifying price war in China’s highly competitive auto market. Companies such as BYD, Leapmotor, and Toyota have introduced a wave of affordable models featuring these technologies, with some vehicles priced under $10,000.
China’s authorities are also ramping up oversight of electric vehicle battery standards to reduce the risks of fire and explosion. The regulatory tightening comes as the new energy vehicle (NEV) segment, including EVs and hybrids, has exceeded expectations, accounting for more than half of total auto sales in late 2024.
The new measures aim to improve safety, regulate rapid technology deployment, and streamline the increasingly saturated automotive market.
