AI News Monitor

China-based companies are rolling out self-driving features in millions of cars, from luxury to mass-market models.

China is accelerating plans to dominate in AI-assisted driving. According to thinktank China EV100, the country’s automotive industry is aiming to democratize self-driving features in its newest cars.

Key industry players have projected that two out of three new cars produced in China this year will be fitted with some basic form of autonomous driving. Autonomous driving and other assisted-driving systems use AI technology to function.

Following industry estimates, up to 15 million cars are expected to have at least SAE level 2 self-driving capabilities in 2025. At this level, they can feature advanced capabilities such as automated steering, acceleration, and deceleration to assist the driver in specific scenarios.

Self-driving vehicles are not uncommon in China. Indeed, the country has had fully self-driving taxi services in some major cities for some time. However, the consumer market for private self-driving cars has remained subdued, leaving the US as industry leaders by a long way. China is now showing signs that they intend to catch up and then dominate the field in future, as both countries continue their AI arms race.

US automaking giant Tesla has been fighting an uphill battle for years to introduce more self-driving functions in its cars in China. Chinese law against self-driving private vehicles has largely frustrated the company’s efforts. With the country now raising some of the restrictions, Tesla may in fact contribute to the expected growth of China’s self-driving-vehicle industry. Last week, the company announced that it was finally rolling out autopilot-assisted driving on China’s streets.

However, Tesla is certain to face stiff competition. Tesla’s rival and the largest electric vehicle producer in China, BYD, has announced that it is installing advanced self-driving features in nearly all of its cars. These will include even the low-cost, mass-market models. Previous AI-driving functions have been limited to more expensive car models.

In a further boost for China’s plans to dominate in AI-assisted driving, there is also ongoing efforts in the country to incorporate advanced Chinese AI model Deepseek into vehicles. This move is spearheaded by the biggest local automotive companies, including BYD and Great Wall Motor. This will allow Chinese vehicles to offer even more sophisticated AI-powered features.

However, analysts insist that the country is still far from rolling out full-scale autonomous driving on its streets. While many cars in China could soon feature SAE level 2 self-driving capabilities, completely autonomous driving—without any human supervision—is not yet permitted by law. It may only become legally available when a vast majority of cars can be fitted with the technology, as this would make it much less likely for accidents to occur.