China tightens control on vehicle advertising, banning terms like “smart” and “autonomous driving” after a deadly Xiaomi crash, requiring approval for software updates.
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| After a fatal Xiaomi crash, China bans "autonomous driving" in car ads and now demands full testing and government approval for all advanced driving upgrades. Image: Xiaomi SU7 |
SHANGHAI, China — April 17, 2025:
China has implemented sweeping new restrictions on automotive advertising, banning the use of terms such as “smart driving” and “autonomous driving” in promotions for vehicles equipped with advanced driving assistance systems (ADAS). The crackdown comes amid growing concerns over vehicle safety and follows a deadly crash involving Xiaomi’s SU7 electric sedan in March.
The directive was delivered during a closed-door meeting held by the Ministry of Industry and Information Technology (MIIT) with representatives from nearly 60 automakers, according to a transcript confirmed by a participant. The ministry warned that promotional language suggesting self-driving capability is now off-limits and that vehicle safety oversight will be significantly strengthened.
The regulatory move was triggered by a high-profile fatality in which a Xiaomi SU7, traveling at 97 kph (60 mph), struck a cement roadside pillar shortly after the driver disengaged the ADAS system. The vehicle burst into flames, fueling public alarm and scrutiny over the role of semi-autonomous technology in consumer vehicles.
Under the updated guidelines, automakers are also barred from performing remote over-the-air (OTA) upgrades to ADAS features in vehicles already sold without prior regulatory approval. Future software updates must undergo thorough safety testing and receive official clearance before being rolled out to customers.
Major players in China’s auto and tech industries — including Huawei, a key ADAS supplier for brands such as Audi — attended the meeting. The policy shift could reshape the competitive landscape of the world’s largest auto market, where “smart driving” capabilities have become a centerpiece of marketing strategies.
China’s electric vehicle sector has expanded at a rapid pace, with EV and hybrid sales accounting for over half of all new car sales by late 2024 — a milestone that arrived earlier than projected. Automakers have been racing to dominate this market, engaging in fierce price wars and pushing advanced tech features to consumers at record speed.
In February, BYD introduced more than 20 budget-friendly models, priced below $10,000, boasting “smart driving” as a free feature. Rivals such as Leapmotor and Toyota quickly followed, amplifying the tech-focused competition.
However, the surge in innovation has outpaced regulatory frameworks, prompting China to tighten rules not just on driving systems, but also on EV battery standards to address fire and explosion risks.
Industry analysts warn that the stricter oversight could lead to higher operational costs and slow innovation. Yet, they also see an upside: the changes could hasten much-needed consolidation in China’s overcrowded automotive industry, which continues to struggle with overcapacity.
As safety concerns mount, the government’s new approach seeks to rein in exaggerated marketing, safeguard consumers, and ensure that progress in smart mobility is grounded in reliability and public trust.