Use of OTA to Conceal Defects Prohibited; Implying Assisted Driving as Autonomous Driving Banned—Assessing the Impact of New Regulatory Measures

Since the start of this year, manufacturers of new energy vehicles have intensified efforts in intelligent driving technologies, making it a central theme in industry discussions. Behind this rapid advancement, however, concerns have surfaced regarding misleading marketing under the banner of “smart driving” and sporadic safety incidents involving these systems. As intelligent connected vehicles become increasingly prevalent, these hidden risks demand stringent oversight and clear regulatory standards.

On August 13, the State Administration for Market Regulation issued a draft for public consultation, jointly with the Ministry of Industry and Information Technology, titled “Notice on Strengthening Recall Management, Production Consistency Supervision, and Standardized Promotion of Intelligent Connected New Energy Vehicle Products.” The consultation period runs through September 15, 2025.

The draft addresses vehicle recalls, production consistency, commercial promotion, and incident reporting—areas of primary concern for consumers of intelligent connected new energy vehicles. It requires manufacturers to place safety warnings and operational instructions for combined driving assistance systems prominently within vehicle mobile applications, in-vehicle information interfaces, and user manuals. These measures aim to ensure end users correctly understand the limitations of assisted driving and do not mistake them for full autonomous capabilities.

Manufacturers must also integrate safety-first driver monitoring and intervention mechanisms. Systems are expected to continuously assess driver engagement and, if signs of hands-off driving or drowsiness are detected, promptly issue voice alerts, activate steering wheel vibrations, impose speed restrictions, guide the vehicle to the roadside, or disable assistance functions to compel driver reengagement and mitigate risks.

To guarantee production consistency, the draft mandates complete and accurate reporting of critical components—such as combined driving assistance modules and energy storage units—within the motor vehicle type-approval system. Over-the-air software upgrades must adhere to a classified management regime: upgrades cannot proceed without prior regulatory filing, no untested software may be pushed to users, and OTA must not serve as a means to conceal defects.

In recent years, some manufacturers have treated OTA updates as proof of technological leadership, using frequent software iterations to mask hardware shortcomings and blur the distinction between OTA and formal recalls. The draft warns that companies engaging in excessive OTA activity will face targeted inspections and special audits by the State Administration for Market Regulation.

Regarding commercial communications, the draft requires that any information provided to consumers about vehicle automation levels, system capabilities, or operational boundaries be truthful and comprehensive. Exaggerated or misleading claims are strictly forbidden, and marketing names or materials must not imply that combined driving assistance systems deliver autonomous driving functions they do not possess, thereby preventing potential misuse by drivers.

The draft further proposes strengthening the reporting and in-depth investigation of safety incidents. Manufacturers must promptly notify authorities of any accidents or collisions occurring during the use of combined driving assistance systems. The State Administration for Market Regulation, together with the Ministry of Industry and Information Technology and other relevant bodies, will oversee thorough incident analyses and audit the completeness and timeliness of these reports.

To foster sustainable industry growth, regulators have already introduced several key documents this year. In February, the Ministry of Industry and Information Technology and the State Administration for Market Regulation released a notice requiring that combined driving assistance parameters be included in vehicle access management, with OTA upgrades subject to classified filing and joint supervision. In June, the Ministry of Industry and Information Technology announced the 2025 supervision plan for production consistency inspections of vehicle manufacturers and products, designating intelligent connected vehicles as a priority and mandating rigorous testing of vehicle structures, crash safety, battery performance, and other critical criteria.