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).
According to meeting records that surfaced online, the new regulations aim to prevent consumer confusion and potential accidents from exaggerated claims about vehicle automation capabilities.
The restrictions come amid three years of intense competition in China's automotive market, where domestic brands have used "smart driving" as a key marketing differentiator without raising prices. Foreign manufacturers, including German and Japanese brands seeking to regain market share at the upcoming Shanghai Auto Show, have also adopted similar technology-focused marketing strategies.
Companies likely affected include Xiaomi, BYD, Leapmotor Technology, Toyota Motor Research Institute, and Huawei, which supplies ADAS technology to multiple manufacturers. Industry analysts suggest the regulations could increase costs, slow technological development, and potentially accelerate consolidation among electric vehicle manufacturers, many of which remain unprofitable outside of market leaders like Tesla, BYD, Li Auto, and Seres Group.
The new rules also prohibit manufacturers from using over-the-air updates to test or improve ADAS features without prior approval, requiring comprehensive testing before deployment.
Article edited by Jack Wu
