Car manufacturers selling vehicles in China are prohibited from using the term 'autonomous driving' in advertisements

China's decision to ban automakers from using terms like 'autonomous driving' and 'self-driving' in advertisements marks a significant move towards tightening regulation of how driver-assistance features are marketed. This new rule is a direct response to rising safety concerns and incidents involving these systems, including a recent high-profile crash involving a Xiaomi Su7 sedan. The regulation requires any updates or new features in advanced driver-assistance systems, known as ADAS, to be thoroughly tested and approved by the government before being implemented in vehicles. These rules make it clear that automakers can no longer rely on over-the-air software updates, a method popularized by Tesla, to enhance vehicle features without going through a rigorous approval process.

The Chinese government's decision comes amidst an increasing number of accidents attributed to advanced driver-assistance systems, raising questions about their safety and efficacy. The incident involving the Xiaomi Su7, where the vehicle caught fire after a crash shortly following the driver taking control, has highlighted potential problems with these technologies. As a result, any improvements or new functionalities in ADAS must now be rigorously tested and receive government approval before being deployed in consumer vehicles, signifying increased oversight on the part of regulators.

Tesla's role in this narrative cannot be understated, as its branding of its advanced driver-assistance systems as 'Full Self-Driving' or FSD has faced scrutiny worldwide. The name itself implies capabilities beyond current technological limits, prompting regulatory responses. In China, Tesla has adapted its branding to reflect local expectations, opting for the more accurate 'Intelligent Assisted Driving,' acknowledging that these systems still require active human oversight.

The over-the-air update model, initially popularized by Tesla, is considered pivotal for automakers aiming to maintain a competitive edge, as it allows for dynamic, prompt feature enhancements and fixes. However, China's mandate dictates that these updates must now adhere to strict government protocols, which could influence how quickly and effectively automakers can roll out improvements.

The broader implications of this regulation are significant, particularly for international automakers seeking to operate within China. This enforcement underscores the necessity for transparency and accuracy in marketing claims and presents a potential challenge as manufacturers must align with China's stringent standards. It may also set a precedent for other countries dealing with similar safety and marketing concerns, potentially influencing global practices in the automotive industry.

Sources: Reuters