China bans ‘smart’ and ‘autonomous’ driving terms from vehicle ads

In a brief statement, the ministry confirmed that the meeting on Wednesday had taken place and said it gave automakers clarification on new regulations pertaining to over-the-air technological upgrades of intelligent and connected vehicles that are relevant to driving and were published in February.

According to the conference transcript, the revised rule prohibits automakers from testing and enhancing their ADAS through remote software upgrades for cars that have already been delivered to customers without permission.

Before implementing such roll-outs, they must now conduct enough testing to confirm dependability and secure government approval.

According to the transcript, one of the companies who attended the conference was Huawei, which provides its ADAS to at least seven brands, including Audi in China. A request for comment from Huawei was not immediately answered.

The regulatory action comes as automakers have been racing to introduce new ADAS-equipped models, promoting the “smart driving” feature as a major selling point in an effort to fight a fierce price war that has continued into its third year in the biggest auto market in the world.

In February, BYD introduced at least 21 reasonably priced vehicles with free “smart driving” capabilities, starting at less than $10,000. Many of its competitors, such as Toyota and Leapmotor, introduced reasonably priced cars with comparable characteristics.

Citing China’s advertising law, China’s public security ministry’s traffic safety research center warned on Monday that automakers who deceived consumers by inflating or fabricating assisted driving features in their ads risk fines of five to ten times the advertising fee or the cancellation of their business license.

According to a research center article, deceptive advertising of an aided driving feature may be illegal if it results in major repercussions, including traffic accidents that claim lives. Offenders may face sentences of less than two years in prison.

Since the industry has expanded more quickly than anticipated and EV and hybrid sales accounted for over 50% of all vehicle sales late last year—a milestone reached ahead of lawmakers’ schedules—Chinese regulators are stepping up their investigation of electric car technologies.

In an effort to lower the dangers of explosions and fires, the authorities are also strengthening regulations for EV batteries.

Stricter rules, according to analysts and industry sources, would raise costs and impede the advancement and use of technology. However, they added, it might also hasten a long-overdue reorganization in China’s congested auto sector, which has been struggling with overcapacity.