China bans ‘Smart Driving’ and ‘Autonomous Driving’ claims in auto ads, tightens ADAS oversight

China is imposing a ban on the use of terms like “smart driving” and “autonomous driving” in car advertisements, as part of a sweeping regulatory move aimed at tightening oversight on advanced driver assistance systems (ADAS) and their over-the-air (OTA) updates.

The decision, confirmed by a meeting held this week by the Ministry of Industry and Information Technology (MIIT) with nearly 60 automotive representatives, comes amid growing safety concerns after a fatal accident in March involving Xiaomi’s SU7 sedan. According to preliminary findings, the car crashed into a roadside pole at 97 km/h shortly after the driver resumed manual control from the car’s ADAS, sparking public debate over the safety of these technologies.

As seen in a transcript from the meeting, reviewed by Reuters, automakers will now be required to seek government approval before pushing remote updates that alter driving-related functions in vehicles already sold. These updates must also be preceded by rigorous testing to verify their safety and reliability.

In its official statement, the MIIT said it had clarified new rules published in February regarding OTA upgrades for intelligent and connected vehicles. Among the attendees of the closed-door session was Huawei, which supplies ADAS to brands including Audi in China.

The new advertising restrictions could hit marketing strategies hard. Chinese carmakers have been aggressively promoting ADAS-enabled vehicles, often billing them as having “smart driving” capabilities to gain an edge in a fiercely competitive market. BYD, for instance, intensified the price war earlier this year by launching over 20 models under $10,000 equipped with free driver-assistance features, prompting peers like Leapmotor and Toyota to follow suit.

The crackdown also comes amid China’s rapid adoption of electric vehicles (EVs). EVs and plug-in hybrids made up more than 50% of total vehicle sales by late 2024, beating government targets ahead of schedule. This rapid growth has raised regulatory concerns over safety, especially involving EV battery fires and overcapacity in the sector.