China has taken a crucial step toward the commercialization of L3 autonomous driving, with the Ministry of Industry and Information Technology (MIIT) granting conditional production permits for two L3-capable models on December 15. These vehicles, designed for urban congestion and highway scenarios, will undergo pilot testing in designated areas of Beijing and Chongqing.
"This approval marks a shift from technical validation to mass production in China’s autonomous driving sector," said Fu Bingfeng, Executive Vice Chairman and Secretary-General of the China Association of Automobile Manufacturers. He emphasized that the move reflects the government’s support for innovation in smart mobility, which requires cross-industry collaboration among automakers, parts suppliers, software developers, and data service providers.
The groundwork for L3 commercialization began over a year ago. In June 2023, MIIT selected nine pilot consortiums, including major automakers such as Changan, BYD, GAC, SAIC, BAIC BluePark, FAW, NIO, SAIC Hongyan, and Yutong. The newly permitted models are operated by Chongqing Changan Vehicle Networking Technology and Beijing Mobility Auto Service, with testing restricted to specific zones and speed limits.
Regulatory momentum has been building. In September, MIIT and seven other ministries outlined plans to advance L3 pilot programs and refine related laws on traffic safety and insurance by 2025–2026. Cities like Shanghai, Beijing, Shenzhen, and Wuhan have also expanded autonomous driving test zones, covering highways and urban expressways.
Automakers are accelerating preparations. GAC, Huawei, Changan, IM Motors, Voyah, XPeng, and FAW-Volkswagen have disclosed L3 testing or deployment plans. A Changan R&D executive noted that 2025 will be a tipping point for intelligent driving adoption, with urban L3 and L4 expected to launch by 2026 and 2030, respectively.
Guohai Securities predicts that L3 formal access may arrive post-2026, following a three-phase regulatory roadmap (standardization, transition, full implementation). Investors are advised to focus on: 1. **Policy-driven demand**: Driver monitoring systems (DMS), data recorders, and validation platforms. 2. **Tech upgrades**: Domain controllers, automotive-grade chips, and brake-by-wire systems.
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