China Tightens Grip on 'Smart Driving' Terminology and Regulations

China's government is restricting automakers from using 'smart driving' terms in ads and tightening regulations on driving assistance technology after a fatal crash involving Xiaomi's sedan. Automakers must now secure approval for tech upgrades, reflecting broader regulatory efforts to enhance safety and curb misleading advertising.

In a decisive move to enhance road safety, China has barred automakers from using 'smart driving' and 'autonomous driving' terms in advertisements for driving assistance features. This shift follows a fatal crash involving a Xiaomi vehicle, which sparked significant concerns over vehicular safety.

The regulations, overseen by the Ministry of Industry and Information Technology, aim to address safety risks associated with intelligent vehicle upgrades. Automakers, including Huawei, must conduct thorough tests and obtain official approval before deploying updates, marking a significant regulatory pivot.

The broader regulatory sweep targets false advertising and seeks to penalize firms that exaggerate assistance system capabilities. The crackdown underlines China's commitment to mitigating risks in its rapidly expanding electric vehicle sector, foreseeing stricter standards amid a competitive market landscape.

(With inputs from agencies.)