Chinese EV makers downplay autonomous driving functions after safety crackdown

Carmakers at this week’s Shanghai auto show have quietly stepped back from bold claims about self-driving features after a fatal crash and a stern warning from China’s top industry regulator.

The change follows a deadly car accident last month involving a Xiaomi SU7 electric sedan. Police say the car’s Navigate on Autopilot system had been turned on shortly before the vehicle slammed into a barrier on a coastal expressway, killing three young women inside.

The crash triggered a public outcry and put fresh pressure on companies that market advanced driver-assistance technology as near-autonomous driving.

Xiaomi’s founder, Lei Jun, told followers he felt “heavy-hearted” over the deaths and promised full cooperation with investigators. The electronics giant had been expected to use China’s biggest car show to reveal its first electric sport-utility vehicle, the YU7, but the rollout was shelved. Lei, usually a star attraction at such events, stayed away from the exhibition hall.

Xiaomi later said the YU7 launch timeline had not changed and would still “stay between June and July as anticipated by founder Lei.”

Beijing summoned 60 carmakers and tech groups to a meeting before the Shanghai auto show

The tragedy also prompted Beijing to call around 60 automakers and technology groups to a closed-door meeting last week. The Ministry of Industry and Information Technology told participants to stop overselling what their systems can do.

“Automakers must effectively enhance the safety level of intelligent connected vehicle products,” the ministry said in a written statement.

That statement landed in the middle of a race among local brands and foreign rivals such as Tesla and Mercedes-Benz, all trying to capture the fast-growing Chinese market for autonomous vehicles. In Shanghai, however, the promotion of autonomous features was very subtle.

Display boards that once trumpeted “full self-driving” now focus on features like lane-keeping, blind-spot alerts, and other assistance features.

Oliver Thöne, Mercedes China head, said during the launch of the new CLA L that people behind the wheel must “stay engaged all the time,” even though the brand’s latest system is “handy and reliable.” Group chief executive Ola Källenius later told reporters the ministry’s message was a “call to action to the original equipment manufacturers to clean up the communication.”

Volkswagen chief executive Oliver Blume struck a cautious note as well. “Safety is number one for Volkswagen,” he said on the eve of the show, while admitting that “you will never have a system with zero defects.”

Huawei and 11 other manufacturers pledge to eliminate false advertising

Telecoms group Huawei, which supplies software and chips to several carmakers, moved to correct the industry’s image. On Tuesday, the auto unit, a state-backed regulatory body, and 11 manufacturers announced a joint pledge to “eliminate false advertising, clearly define the boundaries of smart driving functions, and build user trust.”

The company also rolled out an upgraded driver-assistance suite that can brake to avoid obstacles, help if a tyre bursts, and intervene when a driver becomes incapacitated.

Descriptions such as “smart driving” were replaced with milder phrases like “combination assisted driving” at recent press events hosted by Huawei, Audi’s venture with FAW, and others.

At the same time, BYD, China’s biggest EV maker, sent a notice to local media and online influencers last week asking them to stop using the nickname “God’s Eye” for its self-driving package and to drop catchy labels such as “valet parking.”

On Monday, two national trade groups went further. They issued an open letter urging brands to teach customers the “fundamental difference” between “driver assistance” and “self-driving.”

The reminder matters because China’s road rules still give human operators most of the blame when something goes wrong.

Under present regulations, drivers are fully liable for crashes involving cars with Level 2 features—systems that steer, speed up, and slow down but expect drivers to pay attention every second. Responsibility is shared among drivers, insurers, and manufacturers for Level 3 vehicles, which can handle more complex traffic yet still require assistance from a real driver.

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