Autos

In Depth: China Writes a Stricter Rulebook for a Changing Auto Industry – Caixin Global


The swift rise of new-energy vehicles (NEVs) in China has led regulators to implement new rules to ensure safety, particularly concerning battery safety, intelligent driving, and cybersecurity [para. 1]. In September, NEV sales hit 1.12 million, representing 54.3% of the new passenger car market, surpassing conventional fuel vehicles for the third consecutive month, according to the China Passenger Car Association [para. 2]. Consumers are demanding from NEVs the same reliability and safety as traditional cars [para. 2].

Battery safety has become a significant concern following incidents like the August fire in South Korea involving a Mercedes-Benz electric car, which sparked temporary bans on NEVs in public parking garages in China due to battery fire risks [para. 3]. The challenge with battery fires is their intensity and fast-burning nature, making them difficult to control, especially indoors [para. 3]. Meanwhile, intelligent driving systems are receiving scrutiny after the U.S. National Highway Traffic Safety Administration’s investigation into Tesla’s autonomous driving features, which highlighted accidents caused by driver distraction and the lack of proper engagement [para. 4].

To address these issues, China is rolling out new safety standards for NEV batteries and intelligent vehicle systems, effective January 2026, while introducing mandatory annual inspections starting March 2025 [para. 5]. Industry experts view these measures as marking the end of NEVs’ rapid and unregulated boom, ushering in a mature period focusing on safety and reliability [para. 7]. At an industry forum, notable figures urged manufacturers to prioritize consumer safety, highlighting the risks posed by spontaneous combustion incidents without proper public data backing [para. 7]. The increasing NEV ownership is likely to raise the number of related accidents, prompting regulatory action to improve battery safety standards—considered among the strictest globally [para. 10].

China’s vehicle monitoring system offers potential for early battery risk detection, enabling automakers to warn drivers of instability [para. 15]. However, smaller companies face challenges in using real-time data due to costs, which hampers early warnings [para. 16]. To enhance safety, the government is set to impose annual inspections targeting key NEV systems, complementing national monitoring data [para. 18]. Additional innovation, like diagnostic modules in charging stations, could further aid battery assessments [para. 19].

In balancing progress with protection, Chinese NEV manufacturers are incorporating more advanced intelligent driving technology alongside evolving cybersecurity and data management standards [para. 20]. While cars with Level 2 autonomy features are increasingly mainstream, the industry anticipates Level 3 capabilities by 2026 [para. 21]. Cybersecurity risks are a key concern as hackers could exploit connected vehicles [para. 22]. New national standards approved in August 2024, to be enacted by January 2026, outline rules for autonomous driving data recording, vehicle security, and software upgrades, ensuring long-term safety [para. 24].

In accident investigations involving intelligent driving, it becomes crucial to determine whether control was with the system or the human driver [para. 25]. New cybersecurity standards aim to defend against hacking and data leaks, while software upgrade standards will ensure performance integrity [para. 27]. Proper balance is critical; these frameworks are intended to promote safe innovation rather than hinder technological advancement [para. 28].

As China defines data management regulations, new standards focus on responsible data use while maintaining privacy and security [para. 31]. However, experts caution against overly restrictive measures that might hinder technological progress, advocating for regulatory flexibility as autonomous tech evolves [para. 34].

AI generated, for reference only





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