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Apr 18
China reins in self-driving hype as regulations crack down on 'blindfolded smart driving'
Chinese automakers have set ambitious targets to introduce Level 3 (L3) autonomous driving technology starting in 2025. Companies including GAC, Zeekr, Xpeng, and Chery have announced plans for aggressive rollouts of L3 and even Level 4 (L4) systems over the next two years. However, the primary challenge facing the industry is regulatory rather than technological. The broader adoption of these autonomous driving systems depends heavily on the establishment of detailed nationwide regulations.
China's Ministry of Industry and Information Technology has instructed nearly 60 automotive manufacturers to cease using terms like "self-driving" and "smart driving" in marketing materials for Level 2 (L2) advanced driver-assistance systems (ADAS).

In a decisive move to restore order in its rapidly evolving electric vehicle (EV) market, China's government has introduced a wave of new regulations targeting both the software and hardware sides of the industry. The crackdown spans exaggerated claims in autonomous driving and what experts are calling the country's most stringent lithium battery safety standards to date.

China's leading EV upstarts—Nio, XPeng, and Li Auto—delivered strong sales in 2024. Li Auto stood out as one of just three profitable NEV makers nationwide, alongside BYD and the rising Seres. Despite the momentum, a stark warning has emerged from academia. Zhu Xichan, a professor at Tongji University's Intelligent Vehicle Research Institute, predicts that all three firms could disappear within three years.
In the face of rising global tariff pressures and an increasingly volatile automotive market, Chinese automaker Xpeng Motors is bucking the trend, actively accelerating its expansion into overseas markets. Xpeng's Co-founder and Chairman of the Board, Xiaopeng He, stated that over the next decade, competition in the automotive industry will be fierce, and only 5 to 7 electric vehicle manufacturers will ultimately survive.
Aeon Motor has expanded internationally by opening a new manufacturing plant in Vietnam despite rising tariff challenges. The company noted that the 10% tariff applies worldwide, except Chinese vehicles, which face tariffs of up to 145%. This gives Aeon Motor a cost advantage in key markets like North America. Coupled with its vertically integrated ODM model, Aeon Motor offers comprehensive vehicle development and production, boosting its appeal to global clients.
Xiaomi has postponed a major product launch event that was expected to unveil a new smartphone, AI glasses, tablet devices, and the YU7 electric vehicle, according to industry sources. No new date has been announced for the rescheduled event. The delay follows growing concerns tied to a fatal crash in late March involving the company's SU7 model in Anhui Province, which resulted in the deaths of three students.

Gotion High-Tech, one of China's top lithium battery manufacturers, had positioned itself as a trailblazer among Chinese companies expanding into the US market. However, the company's foray into America has not been without hurdles. Recently, reports from international media revealed that operations at its US factory have been halted. In response, Gotion stated that its projects in Illinois are still progressing steadily.

XPeng Motors plans to begin mass production of its proprietary AI chip, "Turing," in the second quarter of 2025, with deployment across all of its vehicle models. The chip may also power autonomous flying vehicles and robots developed by XPeng's affiliated ventures, according to reports from the South China Morning Post and Sina Finance.
Amid the ongoing economic uncertainties worldwide, tire costs and energy consumption have become increasingly important for ordinary commuters and transport operators alike, and tires that balance durability and energy savings have thus become a critical priority.
On the evening of April 15, XPeng held a global strategic launch event in Hong Kong to announce its automotive strategy for the AI era and unveiled the 2025 XPeng X9. Chairman and CEO Xiaopeng He stated that the 2025 X9 sets a new benchmark for smart mobility with 496 technical upgrades and 35% new components.
The Chinese companies complain about America's non-tariff barriers, but many foreign car manufacturers and brands want to enter the Chinese market—what company hasn't returned defeated?