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Chinese EV makers pivot to safety after ban on “exaggerated” ads

Written by Nikkei Asia Published on   4 mins read

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“Intelligent assisted driving” becomes the mantra at Auto Shanghai amid regulatory scrutiny.

Chinese automotive executives are touting safety features during the country’s premier automotive show, after a high-profile crash involving assisted driving technology prompted regulators to clamp down on what they deemed “exaggerated” advertising.

Seres Group, which sells electric vehicles under the Aito brand, dubbed its Auto Shanghai news conference on April 23 an “intelligent safety launch event.”

“Safety is the greatest luxury,” said the company’s president, He Liyang, stressing that the “safety of our users is our highest priority.” He described the cars’ technology as “intelligent assisted driving,” a subtle but significant change from the broader “intelligent driving” he had used in the past.

Geely, the carmaker behind the Zeekr EV brand, said it invested RMB 2 billion (USD 280 million) to build what it calls the world’s largest standalone safety testing facility, which will gradually begin operations at the end of this year. Local media reported that Gan Jiayue, CEO of Geely Auto Group, used the word “safety” 61 times during a 20-minute presentation at Auto Shanghai.

The more cautious wording and sharp focus on safety come after the Ministry of Industry and Information Technology told automotive industry representatives to stop “exaggerated or false advertising.” According to minutes of the closed-door meeting, published by local media, they can no longer use words like “autonomous driving,” “self-driving,” and “intelligent driving” in their marketing.

The meeting followed a fatal highway crash involving Xiaomi’s SU7 electric vehicle in late March. Xiaomi said the vehicle had been in “navigate-on-autopilot” mode when it approached road work and crashed into a concrete barrier at 97 kilometers per hour. The accident, which is still under investigation, killed three female passengers, according to local reports.

Unlike most of its peers attending Auto Shanghai, Xiaomi did not hold an opening-day news conference on April 23. Its low profile was a stark contrast to last year’s show in Beijing, when CEO Lei Jun toured the venue and drew a huge crowd. The electronics company denied a report by Bloomberg that it will delay the launch of its new YU7 electric SUV, slated for June or July.

In mainland China, the majority of self-driving technologies are classified as Level 2, meaning drivers must keep their hands on the steering wheel at all times. China is actively pursuing Level 3 autonomous driving, which shifts liability from the driver to the automaker. Several companies are due to release Level 3-capable vehicles this year.

However, in Chinese, smart driving and self-driving are pronounced similarly, and some consider them synonymous. Photos and videos on Chinese social media appear to show drivers on highways falling asleep or playing video games with their vehicles in assisted driving mode.

These dangerous situations are “partly because of some car manufacturers over-promoting their product, partly because some of the consumers [are] probably abusing the system,” said James Peng, chairman and CEO of Pony.ai, a company developing even more extensive Level 4 autonomous driving technology.

Speaking to reporters on the sidelines of Auto Shanghai on April 23, Peng said tighter advertising rules are “a good thing,” as it is important to clarify drivers’ responsibility. He was confident that the restrictions would not impact the development of his company, which announced a new generation of robotaxis at the automotive show and plans to have a fleet of 1,000 vehicles by the end of this year.

As recently as 2023, BYD founder Wang Chuanfu had told investors that “all that talk about autonomous driving is nonsense.”

“One accident involving autonomous driving and the car becomes unsellable, and who takes the responsibility? It ends up being the consumer,” said Wang at the time. “We believe autonomous driving will ultimately just be an advanced driver assistance system.”

But in February this year, BYD started to deploy its DiPilot autopilot system in nearly all of its models to “democratize” self-driving tech. This reflected the rise of smart driving as a benchmark for Chinese automakers desperate for new sales points amid fierce competition—at least before the tragic Xiaomi SU7 crash.

In March, Geely Automobile Holdings CEO Gui Shengyue appeared to mock BYD’s stance on smart driving, without naming its rival.

“Attitudes toward intelligent driving differ widely, some are genuinely commendable, while others are difficult to make sense of. Just a year ago, some critics dismissed autonomous driving as a scam. Now, they claim to democratize the technology,” said Gui in a conference call.

In January, Geely’s domestic sales surpassed BYD’s. In March, it rolled out its new G-Pilot smart driving system.

Gui said his company’s view was clear: “Without powerful computing, vast datasets and advanced models, intelligent driving, especially full autonomy, remains an illusion. In today’s environment, we must treat autonomous driving with caution and respect. After all, safety is, and must remain, the core principle of automotive design.”

Bill Russo, founder and CEO of Shanghai-based consultancy Automobility, said the technology had hit a “speed bump.”

But he said that “China is, by nature, a market that experiments more and deploys in a way that encourages companies to learn. … There will be accidents.”

This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.

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