Chinese regulators have proposed stricter safety standards for intelligent connected vehicles (ICVs) following a series of high-profile incidents, including a fatal March crash involving Xiaomi's SU7 electric sedan operating in assisted-driving mode. The draft rules aim to strengthen oversight of production, software updates, and marketing practices in the world's largest electric vehicle market.
The State Administration for Market Regulation and Ministry of Industry and Information Technology announced requirements for enhanced driver monitoring systems, cybersecurity protocols, and clearer safety warnings. Automakers must now ensure production consistency across batches and obtain approval for over-the-air software updates. The regulations explicitly prohibit marketing that could mislead consumers about autonomous driving capabilities.
This regulatory push comes as China's NEV sector records explosive growth, with smart vehicle sales increasing 62% year-on-year in Q2 2024. However, January recalls affecting 1.2 million vehicles for parking assistance flaws and the Xiaomi incident that claimed three lives have heightened concerns about rapid technological adoption outpacing safety frameworks.
Industry analysts suggest the rules could reshape competitive dynamics, favoring established manufacturers with robust R&D capabilities. The public consultation period remains open until September 15, 2025, allowing stakeholders to review the 48-page draft document.
