Beijing Clears Path for Limited Hands-Free Driving in Electric Cars

China has taken a significant step toward the broader adoption of autonomous driving by approving its first two vehicles equipped with Level 3 (L3) self-driving technology. The Ministry of Industry and Information Technology (MIIT) confirmed on Monday that Changan Automobile and BAIC had received authorisation to manufacture electric vehicles capable of hands-free driving under specific conditions, marking an important milestone in the world’s largest automotive market.

According to the ministry, both models are fully electric and are permitted to operate autonomously only on designated urban roads and highways. MIIT stated that the two manufacturers successfully completed all required testing and safety evaluations, and noted that it would work alongside other government bodies to oversee vehicle operations while supporting the growth of China’s intelligent driving sector. The regulator did not disclose a timeline for the commercial launch of the vehicles, although production may begin following regulatory approval.

Currently, the majority of advanced driver-assistance systems available in China fall under Level 2 or Level 2+, which require drivers to maintain constant control of the steering wheel. Although L3 systems are defined by SAE International as “hands-off,” Chinese regulations have not yet formally legalised their widespread use, and drivers are still expected to remain attentive and ready to intervene when necessary. At the highest end of automation, Level 5 vehicles operate entirely without human involvement.

Industry analysts view the approvals as a signal of gradual regulatory liberalisation. Phate Zhang, founder of Shanghai-based automotive data provider CnEVPost, noted that authorities appear inclined to adopt a cautious, phased approach when issuing further production licences to automakers.

MIIT disclosed that Changan’s model, developed by the Chongqing-based state-owned manufacturer, will be capable of navigating dense urban traffic at speeds of up to 50 kilometres per hour when autonomous functions are engaged. BAIC’s Arcfox-branded vehicle, by contrast, has been approved for autonomous operation on highways and expressways at speeds of up to 80 kilometres per hour.

Demand for vehicles equipped with early-stage autonomous features has increased rapidly in recent years, reflecting Chinese consumers’ strong appetite for emerging technologies. Zhang Yongwei, secretary general of China EV100, estimated that roughly two-thirds of new vehicles sold in China this year will feature Level 2 automation or above.

Suppliers are also preparing for the next phase of autonomous driving. Andrew Fan, chief financial officer of lidar manufacturer Hesai Group, recently indicated that China’s automotive supply chain is already gearing up for more advanced self-driving systems, even as regulatory frameworks continue to evolve. He said Hesai is ready to provide lidar sensors and related technologies for premium vehicles featuring L3 capabilities. These sensors, which use laser-based systems to detect surrounding objects, typically cost between US$500 and US$1,000 per unit, with demand rising as leading automakers accelerate autonomous vehicle development.

Several major manufacturers, particularly those targeting the premium electric vehicle segment, including Geely’s Zeekr and Huawei-backed Seres, have already announced semi-autonomous models designed to meet anticipated L3 standards, underscoring the industry’s readiness for the next stage of intelligent mobility in China.