China bans “smart driving” and “autonomous driving” in auto ads

China has prohibited automakers from using the terms “smart driving” and “autonomous driving” in advertisements for advanced driver assistance systems (ADAS). The Ministry of Industry and Information Technology (MIIT) issued the directive during a meeting with nearly 60 automaker representatives on April 16, according to a transcript reviewed by Reuters and confirmed by an attendee.

The regulatory action follows a fatal accident involving Xiaomi’s SU7 sedan in March. Preliminary findings indicate the vehicle collided with a cement roadside pole at 97 kilometers per hour (60 mph) shortly after the driver resumed control from the ADAS. The car subsequently caught fire, prompting renewed safety concerns.

In a brief statement, the MIIT confirmed the meeting and said it clarified the implementation of updated regulations issued in February. These rules govern over-the-air technology upgrades for intelligent and connected vehicles. Automakers are now required to receive approval before deploying software updates that alter driving assistance capabilities in delivered vehicles. They must also conduct sufficient testing to ensure system reliability.

Huawei, a supplier of ADAS technology to at least seven brands including Audi in China, was among the attendees at the meeting, according to the transcript.

The regulatory change comes amid intense competition in China’s automotive market, where manufacturers have increasingly promoted ADAS as a core selling feature. In February, BYD introduced at least 21 low-cost models, priced under $10,000, that included free driving assistance features. Other manufacturers, such as Leapmotor (partly owned by Stellantis) and Toyota, have released similar offerings.

Sales of electric vehicles (EVs) and plug-in hybrids—classified as New Energy Vehicles—surpassed half of all new car sales in late 2024, ahead of government expectations. In response, Chinese regulators have intensified oversight of EV-related technologies, including tightening safety standards for batteries to mitigate fire and explosion risks.

Industry analysts note the stricter rules may increase development costs and slow adoption of new technology. However, they also suggest the measures could contribute to market consolidation in an industry dealing with overcapacity.