China Cracks Down on 'Smart Driving' Claims in Auto Advertisements

China is halting the use of terms like 'smart driving' in auto ads, citing safety concerns after a fatal accident. Automakers face stricter regulations for deploying advanced driving assistance systems, requiring thorough testing and approval before use, impacting the rapid development and pricing in the EV market.

China's Ministry of Industry and Information Technology has mandated a ban on terms such as 'smart driving' and 'autonomous driving' in automotive advertisements. This policy aims to tighten oversight on driving assistance technologies following a fatal accident involving a Xiaomi vehicle.

The regulations come in the wake of a tragic incident with a Xiaomi SU7, where preliminary investigations revealed the vehicle caught fire after a collision. The Ministry outlined new guidelines, requiring automakers to perform extensive testing and secure approval before updating advanced driving systems.

This regulatory crackdown coincides with a competitive push among automakers to release models featuring advanced technologies at affordable prices. Industry analysts warn that the increased scrutiny could decelerate technology adoption, but may also lead to necessary industry consolidation.

(With inputs from agencies.)