Smart driving becomes new front in China car battle

Intelligent driving features are now the new battleground in China’s highly competitive car market, driving brands to make significant technological advancements. However, a recent fatal crash has prompted government intervention, aiming to curb excessive enthusiasm in the race for innovation. Advanced Driver-Assistance Systems (ADAS), which range from cruise control and parking assistance to collision avoidance, form the core of this competition, with the ultimate goal being fully autonomous vehicles. Automakers are heavily investing in these technologies, particularly in China, the world’s largest car market, known for its young and tech-savvy consumers. 

China Car Brands Push Intelligent Tech Forward

“Ten years ago, only 15 percent of customers said they would change cars because of an intelligent cockpit — today it’s 54 percent,” Giovanni Lanfranchi of electric vehicle (EV) firm Zeekr, noted. According to an AlixPartners report, nearly 60 percent of cars sold in China last year featured level-two ADAS or higher, where the driver remains in control, but assistance is continuous. These features “are emerging as a key competitive tool,” added Yvette Zhang from AlixPartners. 

Some automakers, like Xpeng and Xiaomi, rely on their proprietary technology, while others, such as Huawei, are collaborating with tech giants. A survey conducted by AlixPartners revealed that two-thirds of global auto executives believe China is leading the world in the development of these technologies. The report cites China’s ability to collect and process vast amounts of data, along with its pool of software and machine-learning talent, as key advantages. 

However, the development of ADAS technology isn’t immune to the intense price wars characterizing the Chinese market. In February, domestic EV giant BYD announced it would equip nearly all its cars with the “God’s Eye” driving system, including models priced below $10,000. 

Tragedy Sparks a Rethink on Safety and Innovation

The momentum was abruptly halted after a fatal crash in March involving a Xiaomi SU7, which had been in assisted driving mode when it crashed, killing three college students. The incident raised safety concerns about cars being marketed as capable of “autonomous driving”—a concept that is still in its early stages. For instance, Tesla’s “Full Self-Driving” feature in the U.S. is meant to be used with driver supervision.

Tom Nunlist, associate director for tech and data policy at Trivium China, remarked, “The price war has just been so brutal; companies are desperate to find any way to set themselves apart. So the question is, have they been over-promising on features and releasing things as quickly as possible, for the purposes of fighting this commercial battle?” 

In response to the crash, China’s Ministry of Industry and Information Technology (MIIT) held a meeting with key players in the automotive industry, stressing the need for stricter enforcement of safety regulations. The ministry warned automakers to rigorously test systems, clearly “define system boundaries”, and avoid exaggerated or false advertising. Reports also indicated that the MIIT would crack down on the practice of improving ADAS systems via remote software updates. 

From Hype to Caution: A New Focus on Consumer Trust

As Auto Shanghai, a major industry show, began last week, a noticeable shift occurred. “In a sharp U-turn from just two months ago, carmakers have taken a low profile in terms of autonomous driving functions, but are emphasizing safety instead,” Paul Gong of UBS said. At BYD’s booth, a sign read, “Safety is the ultimate premium of new energy vehicles,” and at Xiaomi’s booth, the SU7’s color choices and hardware were emphasized, with no mention of ADAS. 

Zhang Yu, managing director of Automotive Foresight, stated that the crash was “only a setback in marketing terms, which is helpful for the healthy development” of the technology. He added that the incident was more about the public’s misunderstanding of ADAS and the boundaries of autonomous driving, rather than a failure of the technology itself. 

While the development of self-driving technology continues, Trivium’s Nunlist warned that a truly autonomous car—level five on the scale—is “certainly not imminent” due to significant challenges with last-mile technology.

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