China Tightens Grip on Autonomous Driving Software with New Regulations

China's new regulations for autonomous driving software require regulatory approval for over-the-air upgrades. Automakers like Tesla and Xiaomi are affected, as such upgrades are considered product recalls. The rules demand stopping sales of defective vehicles and obtaining licenses for technical changes, to ensure consumer safety and transparency.

China's industry ministry announced on Friday that new regulations require over-the-air (OTA) software upgrades related to autonomous driving to receive regulatory approvals. This move aims to prevent automakers from using these upgrades to conceal defects or evade liability.

Electric vehicle manufacturers, including Tesla and Xiaomi, commonly use OTA upgrades to address software glitches. Under China's regulations, these upgrades are considered product recalls, raising questions about whether consumers might need to return vehicles for refunds. The rules obligate those planning OTA upgrades to fix product defects or implement recalls to halt the production and sale of defective vehicles immediately.

Furthermore, if fixing defects necessitates changes to the main technical parameters of a vehicle, automakers must secure a license for these product changes before resuming production. The regulations also prohibit marketing driving assistance systems in ways that imply they can serve as autonomous driving systems. Additionally, automakers must report any failures or accidents related to these systems to the industry ministry and market regulator.

(With inputs from agencies.)