About 15 million new cars in China – even models priced below CNY100,000 – 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 in China in 2025 will have the L2 autonomous driving capability or above, according to Zhang Yongwei, General Secretary of China EV100, a non-governmental organization whose members are 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. “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 (IIVEA). “The rising adoption of intelligent cars marks a watershed in the global automobile industry.”
In 2024, Chinese manufacturers delivered 22.9 million cars, both electric and petrol vehicles, to domestic and international customers, up 5.5% year-on-year. Echoing Zhang’s forecast, BYD, the world’s largest EV maker, has drawn up a plan to build cars priced below CNY100,000 with preliminary ADAS, according to two industry officials with knowledge of its plans. Most Chinese-made cars with ADAS are priced above CNY150,000. This year would see the “democratization of high-end autonomous-driving systems” in mainstream vehicles in China, as dozens of carmakers strengthen innovation to race ahead of their rivals..
Autonomous driving is set to save Chinese companies about CNY1.8 trillion in annual labor 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, 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 CNY10,000, according to Chen Jinzhu, CEO of Shanghai Mingliang Auto Service, a consultancy, as reported by the South China Morning Post.