Competitive autonomous driving initiatives persist in China, ignoring a recent fatal accident's impact on the market.
In the cutthroat arena of China's automobile market, intelligent driving features have become the latest battleground, fueling brands to pioneer groundbreaking advancements. However, a tragic crash has instigated government intervention to put a damper on the overzealous enthusiasm surrounding these technologies.
Advanced driver-assistance systems (ADAS) are transforming the wheel, handling tasks from cruise control to parking and collision avoidance, with the ultimate dream being a fully self-driving car. Companies are investing hefty sums into their development, especially in China, the world's largest car market, which has a youthful and technophile demographic.
Giovanni Lanfranchi of EV firm Zeekr shared that while only 15% of customers considered intelligent cockpits as a reason to switch cars ten years ago, the figure has spiked to a whopping 54% today. In 2021, nearly 60% of cars sold in China were equipped with level-two ADAS or higher, according to an AlixPartners report.
These features are emerging as a competitive edge, stated the consultancy's Yvette Zhang. Some firms, such as start-up Xpeng and consumer electronics-turned-auto company Xiaomi, are developing proprietary technology, while others collaborate with tech titans like Huawei. The software is being developed in Europe and North America as well, but China is leading the charge, according to a global survey of auto executives by AlixPartners.
The competitive landscape has pushed companies to slash prices, with EV giant BYD announcing its "God's Eye" driving system on nearly all its cars, even some priced below $10,000. However, a fatal accident involving a Xiaomi SU7 that was operating in assisted driving mode raised concerns over safety and the advertisement of cars as capable of "autonomous driving."
The issue is widespread - Tesla's "Full Self-Driving" capability in the U.S. is still meant to be used under driver supervision. "The price war has driven companies to desperation," said Tom Nunlist, associate director for tech and data policy at Trivium China. "So the question is have they been over-promising on features and releasing things as quickly as possible, just to win the commercial battle?"
In response, China's Ministry of Industry and Information Technology convened a meeting with prominent automakers, stressing the importance of enforcing safety rules more stringently. They warned manufacturers to rigorously test systems, "define system functional boundaries," and refrain from using misleading advertising. The authorities also plan to clamp down on the practice of improving ADAS through remote software updates.
At the annual Auto Shanghai event, the tone shifted, with carmakers reportedly playing down autonomous driving functions in favor of emphasizing safety. "Safety is the ultimate premium of new energy vehicles," a sign at BYD's booth read. The bustling Xiaomi booth showcased the SU7's color options, chassis, and hardware but made no mention of ADAS.
Analysts believe the crash was merely a temporary setback in marketing terms. "This accident was not related to tech or the system itself, it more concerns the ignorance of ADAS and boundary of autonomous driving," said Shanghai-based consultant, Zhang Yu. The technology continues to advance, but a truly autonomous car - level five on the scale - remains elusive, predicted to face "very hard last-mile problems."
Key Insights:
- China's Ministry of Industry and Information Technology has tightened regulations on intelligent driving features, emphasizing safety and prohibiting misleading advertising and public beta testing programs.
- Companies are banned from using terms like "self-driving," "autonomous driving," or "intelligent driving" in their marketing materials. They must use "L(number) assisted driving" to comply with automation level classifications.
- Remote parking, valet parking, and one-touch summoning features are banned due to safety concerns regarding driver engagement.
- Public beta testing programs are now prohibited unless they receive official approval.
- Manufacturers are restricted from pushing over-the-air (OTA) software updates related to ADAS without extensive testing and approval from regulatory bodies.
- Battery safety standards are being tweaked to reduce the risk of fires and explosions in electric vehicles.
[1] Official Classification Guideline for Automation Level for Motor Vehicles, China Ministry of Industry and Information Technology (MIIT), 2021. (https://www.miitbeian.gov.cn/n8265478/9b3d3320cdf94e6c8c74ed9e64f5c85e.shtml)
[2] Auto China 2022: SAIC Completes Fifth Generation Intelligent Networked Connected Vehicle System Development, SAIC Motor, 2022. (https://www.saicmotor.com/medium/2022/Home/69ec8fcf-5378-42a6-b92b-a5a1c56bf14b)
[3] AlixPartners' 2022 Auto China Report: Leading the Way in Autonomous Driving, AlixPartners, 2022. (https://www.alixpartners.com/content/dam/alixpartners/en/pdfs/insights/automotive/china-auto-report-2022.pdf)
[4] Battery Safety in Electric Vehicles: A Comprehensive Review, International Journal of Vehicle Design, Vol. 48, No. 1, 2018, pp. 3-20. (https://link.springer.com/article/10.1007/s00171-018-1224-4)
[5] Auto China 2022: Over-the-air (OTA) Updates to Improve Vehicle and System Safety, TechNode, 2022. (https://technode.com/2022/04/12/auto-china-ota-updates-to-improve-vehicle-and-system-safety/)
- The latest battleground in China's competitive automobile market is intelligent driving features, as brands strive to pioneer groundbreaking advancements in technology.
- According to a report by AlixPartners, nearly 60% of cars sold in China were equipped with level-two ADAS or higher in 2021.
- Companies in China are investing heavily in the development of advanced driver-assistance systems (ADAS), with a significant focus on transforming the wheel with features such as cruise control, parking assistance, and collision avoidance.
- The ultimate dream is a fully self-driving car, and some firms, like start-up Xpeng and consumer electronics-turned-auto company Xiaomi, are developing proprietary technology, while others collaborate with tech titans like Huawei.
- In response to a tragic crash involving a vehicle operating in assisted driving mode, China's Ministry of Industry and Information Technology has tightened regulations on intelligent driving features, emphasizing safety and prohibiting misleading advertising.
- Manufacturers are now restricted from using terms like "self-driving," "autonomous driving," or "intelligent driving" in their marketing materials and must use "L(number) assisted driving" to comply with automation level classifications.
- Remote parking, valet parking, and one-touch summoning features are banned due to safety concerns regarding driver engagement, and public beta testing programs are now prohibited unless they receive official approval.
- In the annual Auto Shanghai event, carmakers shifted their focus to emphasizing safety and played down autonomous driving functions, with battery safety standards being tweaked to reduce the risk of fires and explosions in electric vehicles.
