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Home World News

15 million new Chinese EVs to have self-driving features this year

February 2, 2025
in World News
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About 15 million new cars taking to mainland China’s roads – even models priced below 100,000 yuan (US$13,914) – will be fitted with preliminary autonomous-driving technology this year as the cost of the technology declines, according to industry estimates.

These cars will feature at least level 2 (L2) self-driving capabilities, meaning they can control steering, acceleration and deceleration but still require drivers to take over at any time.

Two out of three new cars sold on the mainland in 2025 will have the L2 autonomous driving capability or above, according to Zhang Yongwei, general secretary of China EV100, a non-governmental organisation that has as members most of the top executives of the country’s major electric vehicle (EV) manufacturers. Level of intelligence is a new battleground for carmakers as they struggle to survive cutthroat competition, he said during a press conference last month in Beijing.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

“Mass production of advanced driver assistance systems [ADAS] in the world’s largest automotive market has enabled more Chinese consumers to get a taste of self-driving,” said David Zhang, general secretary of the International Intelligent Vehicle Engineering Association. “The rising adoption of intelligent cars marks a watershed in the global automobile industry.”

In 2024, Chinese manufacturers delivered 22.9 million cars, comprising both electric and petrol vehicles, to domestic and international customers, up 5.5 per cent on year.

Echoing Zhang’s forecast, BYD, the world’s largest EV maker, has drawn up a plan to build cars priced below 100,000 yuan with preliminary ADAS, according to two industry officials with knowledge of its plans.

Most Chinese-made cars with ADAS are priced above 150,000 yuan.

This year would see the “democratisation of high-end autonomous-driving systems” in mainstream vehicles on the mainland, as dozens of carmakers strengthen innovation to race ahead of their rivals, Paul Gong, head of China auto research at UBS, said at the Post’s China Future Tech webinar on January 9.

A self-driving taxi operates in Beijing on August 21, 2024. Photo: EPA-EFE alt=A self-driving taxi operates in Beijing on August 21, 2024. Photo: EPA-EFE>

Autonomous driving is graded in five levels of sophistication. In China, most intelligent vehicles are classified as L2 or L2+ under the standards set by US-based SAE International. These levels stipulate that the driver must be alert and ready to take control at any time.

L3 is considered a “hands-off” system, but still requires drivers to be alert and ready to take over, while L4 would allow drivers to take their eyes off the road. L5 is a fully automated system with no need for human intervention.

Autonomous driving is set to save Chinese companies about 1.8 trillion yuan in annual labour costs by 2030 as thousands of trucks become driverless, UBS analyst Xu Bin predicted in 2022. To enhance efficiency in the manufacturing sector, Beijing has been striving to slash logistics costs to boost companies’ profitability.

“Autonomous systems can drive sales of cars since young drivers in China are keen on the self-driving experience,” said Zhao Zhen, a sales director at Shanghai-based dealer Wan Zhuo Auto. “The smart cars are not fully autonomous, but those brands whose models require fewer human interventions are more attractive to potential buyers.”

The cost of an ADAS has dropped over the last two years amid increasing production and sales of intelligent cars in China. It now stands at about 10,000 yuan, according to Chen Jinzhu, CEO of Shanghai Mingliang Auto Service, a consultancy.

In December, Andrew Fan, chief financial officer of Shanghai-based lidar sensor maker Hesai, said that the cost of the devices, which many smart cars use to map their surroundings, had dropped to about US$200 per unit from thousands of dollars five years ago.

Chinese car builders are playing catch-up with Tesla, as the US carmaker’s Full Self-Driving (FSD) system is believed to be the market leader.

The system is not yet approved for use in China, but it is likely to enter testing this year. Tesla charges US$8,000 to install FSD in the US, on top of a US$99 monthly subscription.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.

Tags: autonomous drivingChinaDavid Zhangdriver assistance systemsintelligent carsInternational Intelligent Vehicle Engineering Associationmainland ChinaZhang Yongwei
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