KATHMANDU: China has banned automakers from advertising driver assistance features as ‘smart driving’ or ‘autonomous driving’ following a deadly accident involving Xiaomi’s new SU7 electric sedan.
The move comes after the crash in March, where the vehicle hit a cement barrier at high speed while transitioning between driver-assist and manual control, resulting in a fatal fire.
The Ministry of Industry and Information Technology (MIIT) shared the decision during a recent meeting with 60 representatives from different automakers. According to the decision, car companies must now obtain government approval before releasing over-the-air (OTA) updates for driver-assistance systems and conduct thorough safety testing before deployment.
The move comes following a deadly accident involving Xiaomi’s new SU7 electric sedan.
Officials have also warned automakers not to exaggerate or make false claims about their driving technology in advertisements. Such violations will attract heavy fines or even lead to the revocation of their business license. If false claims result in accidents, those responsible could also face criminal charges.
Many Chinese automakers are in a race to attract customers by offering smart features in their vehicles. These features range from self-parking and auto lane-changing to automatic braking. Experts say the new regulations may slow innovation and increase costs, forcing smaller automakers out of the market.
The policy shift could also impact Nepal’s growing Chinese EV sector, where vehicles with auto parking and advanced driver-assistance systems (ADAS) have gained popularity among urban consumers. As most of Nepal’s electric vehicles are imported from China, dealers may need to adjust marketing materials and could face delays in receiving software updates for existing models.
