China eyes Level 3 autonomy rollout by 2026, tightening grip on assisted-driving tech after fatal Xiaomi crash

Mint

12 hours ago

China is stepping up regulatory oversight of assisted-driving technology, even as it urges domestic carmakers to accelerate innovation in the race for global dominance in autonomous vehicles.
Following a fatal crash involving a Xiaomi SU7 in March, in which three passengers died shortly after the driver switched from assisted mode to manual control, regulators are finalising new safety rules for driver-assistance systems. The Xiaomi incident has triggered increased scrutiny, with Beijing determined to prevent the overpromotion of these systems' capabilities.
Officials are walking a fine line, encouraging rapid technological advancement without compromising road safety. Analysts suggest this balanced approach, if executed well, could offer China a competitive edge over markets like the United States, where regulatory frameworks for autonomous vehicles remain fragmented.
Under current Chinese regulations, systems that control steering, acceleration, and braking under limited conditions are permitted, but drivers must remain alert. The use of terms such as 'autonomous' or 'smart' in marketing is prohibited to avoid misleading consumers.
The revised regulations are expected to include stricter standards for hardware and software that monitor driver attentiveness and response times. State-backed firms such as Dongfeng and Huawei have been enlisted to assist in drafting the rules, with the government seeking public feedback over a month-long consultation period ending Friday.
Despite the push for caution, Chinese authorities are continuing efforts to roll out more advanced Level 3 systems. These allow drivers to take their eyes off the road in specific scenarios, such as highway driving, while still requiring them to be ready to retake control. State-owned Changan had been preparing to begin Level 3 validation tests in April, but those were halted in the wake of the Xiaomi crash. A source familiar with the matter indicated the government aims to resume testing later this year, with an initial Level 3 vehicle approval targeted for 2026.
Driver-assistance technology has become a major area of competition in China's increasingly crowded car market. Level 2 systems, which still require driver supervision, have already become widespread, featured in vehicles from domestic giants like BYD and foreign players such as Tesla. According to Canalys, over 60 per cent of new vehicles sold in China this year are expected to offer Level 2 capabilities.
Companies have also been able to lower costs enough to offer such features at little or no additional expense. BYD, for instance, now includes its 'God's Eye' driving software across all models without a surcharge.
Globally, China is positioning itself to lead in assisted-driving technology much as it did with electric vehicles. Last year, the government selected nine automakers for public road testing aimed at advancing self-driving technologies.
As part of its regulatory shift, China will also hold carmakers and component suppliers legally accountable for system failures, a move that mirrors similar legislation passed in the UK last year.
At the Shanghai Auto Show in April, firms including Huawei and Geely's Zeekr showcased Level 3-ready technologies. Huawei claimed its system, designed for highways, had undergone over 600 million kilometres of simulated testing. Zeekr unveiled the 9X luxury SUV, stating it was ready for mass production in the third quarter, pending regulatory approval.
In contrast, global brands like Mercedes-Benz and Volkswagen have been more conservative. While highlighting progress in assisted-driving features, they have refrained from introducing Level 3 systems, citing liability concerns and cost barriers. Mercedes-Benz's CTO Markus Schaefer noted that while hardware costs have decreased, meeting Level 3 safety standards remains significantly expensive.
(With inputs from Reuters)