China’s highly competitive car market has shifted its focus to intelligent driving technologies, with brands racing to innovate and lead the global automotive industry. This shift is driven by the demand for advanced driver-assistance systems (ADAS), which range from cruise control to more sophisticated collision avoidance systems. The ultimate goal is to develop fully autonomous vehicles. However, a recent fatal crash involving a Xiaomi car has prompted government intervention to ensure safety regulations keep pace with innovation.
The Rise of Intelligent Driving Features in China’s Car Market
China, the world’s largest car market, is witnessing an intense race for leadership in intelligent driving technologies. With a young, tech-savvy population, automakers are investing heavily in ADAS, aiming to enhance the driving experience and gain a competitive edge. According to Giovanni Lanfranchi of electric vehicle (EV) maker Zeekr, consumer demand has skyrocketed: “Ten years ago, only 15% of customers said they would change cars for an intelligent cockpit—today that figure is 54%.”
In 2024, nearly 60% of cars sold in China featured level-two ADAS or higher, where the system offers continuous assistance but the driver maintains control. This data, from an AlixPartners report, highlights the growing importance of these features as a competitive tool in the automotive industry. As technology continues to advance, intelligent driving features are becoming a defining factor in consumer purchasing decisions.
China Leading the World in Autonomous Driving Technology
China’s advancements in intelligent driving technology have garnered global attention. In a survey of international auto executives, two-thirds of respondents believed that China leads the world in ADAS development. The report cited the country’s ability to collect and process vast amounts of data and its access to a large pool of software and machine learning talent. Companies such as Xpeng and Xiaomi are developing their own proprietary technologies, while others like Huawei collaborate with automakers to create cutting-edge solutions.
However, the rapid development of autonomous driving technologies has not come without challenges. Chinese automakers are facing price wars that impact the affordability of these advanced features, and in February, EV giant BYD announced that its “God’s Eye” driving system would be available in cars priced below $10,000, making advanced ADAS more accessible to consumers.
Fatal Crash Raises Concerns Over Safety and Marketing
A tragic accident in March involving a Xiaomi SU7, which was operating in assisted driving mode at the time, has raised serious concerns about the safety of these systems. The crash, which claimed the lives of three college students, sparked a national debate about the true capabilities of intelligent driving technologies. Critics argue that automakers are over-promising on features and marketing cars as capable of “autonomous driving” when they still require driver supervision.
Tom Nunlist, Associate Director for Tech and Data Policy at Trivium China, emphasized the fierce price competition in the Chinese market, noting that companies are eager to differentiate themselves by offering advanced features. However, this rush to market has led some to question whether these technologies are being released prematurely.
Government Response: Stricter Safety Regulations
In response to the fatal accident, China’s Ministry of Industry and Information Technology held a meeting with top automakers, urging them to tighten safety standards. The ministry made it clear that it would enforce stricter regulations on ADAS testing, system functionality definitions, and advertising claims. Reports indicate that authorities will also target the practice of enhancing ADAS features through remote software updates.
A Shift Toward Safety at Auto Shanghai
At the 2025 Auto Shanghai show, the industry’s focus appeared to shift. Car manufacturers, once eager to promote their autonomous driving capabilities, have started to emphasize safety as a top priority. At the BYD booth, for example, a prominent sign read: “Safety is the ultimate premium of new energy vehicles.” Xiaomi, too, opted to downplay the ADAS features of its SU7, highlighting the car’s design and hardware instead.
UBS analyst Paul Gong noted the industry’s “sharp U-turn” in marketing strategies, with a more cautious approach to promoting autonomous driving functions. While the technology continues to evolve, experts agree that fully autonomous vehicles (level five autonomy) are still far from being a reality, with significant challenges remaining, particularly in the final stages of autonomous driving.
The Road Ahead for Autonomous Driving in China
Despite the setback caused by the tragic accident, the future of intelligent driving in China remains promising. Experts believe that the crash was more about the misunderstanding of ADAS capabilities rather than a flaw in the technology itself. As automakers continue to develop advanced driver-assistance systems, safety and regulatory measures will play a critical role in shaping the future of autonomous vehicles.
As the global automotive industry watches China’s developments closely, the demand for advanced safety features and intelligent driving systems will likely continue to grow. While the race for fully autonomous cars is ongoing, the market is increasingly prioritizing safety, ensuring that technological progress is balanced with consumer trust and regulatory oversight.
