China is banning automakers from using terms like autonomous driving and smart driving when advertising car assistant features.
According to Reuters, automakers are no longer allowed to test and improve their autonomous driving systems (ADAS) without approval, and must conduct sufficient tests to verify reliability and obtain approval from authorities before roll-outs.
The regulatory move comes as automakers have been rushing to launch new models equipped with ADAS, touting the “smart driving” capability as a key selling point to battle a brutal price war in the world’s largest auto market.
This decision comes after an accident involving one of Xiaomi’s SU7s, in which three people were killed, triggering widespread concerns over vehicle safety.
The incident, which occurred on March 29, marks the first major accident involving the SU7 sedan, which Xiaomi launched in March last year and which, since December, has outsold Tesla’s Model 3 monthly. Reuters reports that after BYD rolled out at least 21 affordable models in February priced from less than $10,000 that were equipped with free “smart driving” features, others, including Leapmotor and Toyota, followed suit, introducing affordable vehicles with similar features.
China’s public security ministry’s traffic safety research centre said that automakers that misled consumers by fabricating or exaggerating assisted driving functions in advertisements could face fines of five to 10 times the advertising fee or have their business license revoked, citing China’s advertising law.
False advertising of an assisted driving function could constitute a criminal law violation when it causes serious consequences, such as traffic accidents resulting in casualties.
