logo
Smart driving new front in China car wars despite fatal crash

Smart driving new front in China car wars despite fatal crash

IOL News28-04-2025

Advanced driver-assistance systems (ADAS) help with tasks ranging from cruise control to parking and collision avoidance, with the ultimate aim being a fully self-driving car.
Image: File
Intelligent driving features are the new battleground in China's merciless car market, with competition spurring brands to world-leading advances -- but a recent fatal crash has seen the government intervene to put the brakes on runaway enthusiasm.
Advanced driver-assistance systems (ADAS) help with tasks ranging from cruise control to parking and collision avoidance, with the ultimate aim being a fully self-driving car.
Automakers are pouring investment into their development, especially in the world's biggest car market China, which skews young and tech-savvy.
"Ten years ago, only 15 percent of customers said they would change car because of an intelligent cockpit -- today it's 54 percent," Giovanni Lanfranchi of EV firm Zeekr said.
Almost 60 percent of cars sold in China last year had level-two ADAS features -- where the driver is still in control but there is continuous assistance -- or above, according to an AlixPartners report released last week.
The features "are emerging as a key competitive tool", said the consultancy's Yvette Zhang.
Some firms use their own proprietary technology, like start-up Xpeng and consumer electronics-turned-car company Xiaomi, while others are cooperating with tech giants such as Huawei.
Such software is being developed in Europe and North America too.
But in a survey of hundreds of global auto executives surveyed by AlixPartners, two-thirds said they believed China led the world in the field.
Over-promising?
Then came a fatal accident in March involving a Xiaomi SU7 that had been in assisted driving mode just before it crashed.
The accident, in which three college students died, raised concerns over safety and the advertising of cars as being capable of "autonomous driving".
The issue is an industry-wide one -- Tesla's US-released "Full Self-Driving" capability, for example, is still meant to be used under driver supervision.
"The price war has just been so brutal, companies are desperate to find any way to set themselves apart," said Tom Nunlist, associate director for tech and data policy at Trivium China.
"So the question is have they been over-promising on features and releasing things as quickly as possible, for the purposes of fighting this commercial battle."
China's Ministry of Industry and Information Technology seems to share those concerns.
After the crash, it held a meeting with leading automakers and other key players in which it made clear that safety rules would be more tightly enforced.
It warned automakers to test systems rigorously, "define system functional boundaries... and refrain from exaggerated or false advertising".
Reports said it will also crack down on the practice of improving ADAS via remote software updates. 'Sharp U-turn'
As the massive industry show Auto Shanghai kicked off last week, the shift in gear was obvious.
"In a sharp U-turn from just two months ago, carmakers have taken a low profile in terms of autonomous driving functions, but are emphasising safety instead," said UBS' Paul Gong in a note.
"Safety is the ultimate premium of new energy vehicles," a sign at BYD's booth read.
At the bustling Xiaomi booth, information boards touted the SU7's colour choices, chassis and hardware -- but AFP saw no mention of ADAS at all.
"The autonomous driving function marketing race seems to have halted, at least temporarily," wrote Gong.
Zhang Yu, managing director of Shanghai-based consultancy Automotive Foresight, told AFP that he thought the crash was "only a setback in marketing terms, which is helpful for a healthy development" of the area.
"This accident was not related to tech or the system itself, it more concerns the ignorance of ADAS and boundary of autonomous driving," he added.
The technology itself continues to progress.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Huawei powers Aito M9 with autonomous driving technology
Huawei powers Aito M9 with autonomous driving technology

The Citizen

time3 hours ago

  • The Citizen

Huawei powers Aito M9 with autonomous driving technology

China's tech companies and automakers have invested billions in self-driving technology, As cars continue to evolve with more stunning, sporty and powerful vehicles, so does the technology under the hood. Autonomous cars are not new, and like any concept, they are expensive to develop and are equally aggressively priced when they hit the market. Self-driving cars China's tech companies and automakers have invested billions in self-driving technology, aiming to catch up with industry leaders in the United States. On a recent trip to Shenzhen, The Citizen had the opportunity to experience autonomous cars. However, while the car drove and navigated itself through the city, the driver, Lyn, had to remain in the driver's seat. 'According to Chinese law, I have to sit here even if I am not driving'. WATCH: Huawei gives a glimpse into the self-driving capabilities of the Aito M9. Check out this amazing technology I saw at the Huawei flagship store in Shenzhen, China. This is the Aito M9 series car. It literally drives itself 😀 The driver is Kiki #Huawej #AitoM9 @HuaweiZA June 18, 2025 ALSO READl Nzimande signs letter of intent in China to boost AI in SA Fatal crash It was a bit scary watching the Huawei-backed Aito M9 car driving itself and eventually parking perfectly opposite Huawei's flagship on its sprawling campus. Concerns about safety arose in April when an Aito car was involved in a fatal accident due to a failure in its automatic braking system. So, while an autonomous car will be great when driving from Johannesburg to Cape Town, being behind the wheel and alert is a must. Long way to go Despite growing interest, fully autonomous cars still have a long way to go before they become commonplace. The lack of a human driver also raises practical concerns. Some customers have disabilities or large items, and driverless cars can't help them. Huawei tech Last year, Chinese electric vehicle (EV) giant BYD signed an agreement with Huawei to use the Chinese tech conglomerate's advanced autonomous driving system in its off-road Fangchengbao EVs. The use of Huawei technology also highlights pressure on the Chinese EV champion to play catch-up against rivals in beefing up smart driving configuration with in-house development. The partnership with Huawei also reflected the growing presence of the Chinese tech company in the EV sector as a major supplier of ADAS. Volkswagen's Audi will also use Huawei's ADAS in its EVs for the Chinese market. NOW READ: Another SA neighbour gets Musk's Starlink

SA signs US$1.5 billion loan with World Bank
SA signs US$1.5 billion loan with World Bank

The Citizen

time5 hours ago

  • The Citizen

SA signs US$1.5 billion loan with World Bank

The South African government and the World Bank have signed a US$1.5 billion Development Policy Loan Agreement that will assist in unlocking key infrastructure bottlenecks, particularly in the energy and freight transport sectors. In a statement on Monday, the National Treasury explained that the loan is aimed at supporting critical structural reforms to enhance the efficiency, resilience, and sustainability of the country's infrastructure services. The loan support is anchored on three key pillars of structural reform: improving energy security, enhancing the efficiency and competitiveness of freight transport services, and supporting South Africa's transition toward a low carbon economy. These reforms are critical enablers of inclusive growth and job creation. 'This partnership marks a significant step towards addressing South Africa's pressing economic challenges of low growth and high unemployment. 'The financing forms part of the government's broader efforts to implement structural reforms that strengthen public institutions, crowd in private investment, and improve service delivery across priority sectors of the economy,' National Treasury said. The financing terms of the loan are in line with National Treasury's financing strategy. Specifically, the loan offers both favourable interest rates and flexible repayment terms, contributing to minimising increase in debt service costs. The financing terms of the World Bank loan are as follows: Nominal value: US$1.5 billion, Maturity: 16 years with a 3 year-grace period, Interest rate: 6-month Secured Overnight Financing Rate (SOFR) plus 1.49%. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!

World Bank and IMF climate snub 'worrying', says COP29 presidency
World Bank and IMF climate snub 'worrying', says COP29 presidency

eNCA

time2 days ago

  • eNCA

World Bank and IMF climate snub 'worrying', says COP29 presidency

BONN - The hosts of the most recent UN climate talks are worried international lenders are retreating from their commitments to help boost funding for developing countries' response to global warming. Major development banks have agreed to boost climate spending and are seen as crucial in the effort to dramatically increase finance to help poorer countries build resilience to impacts and invest in renewable energy. But anxiety has grown as the Trump administration has slashed foreign aid and discouraged US-based development lenders such as the World Bank and the International Monetary Fund from focussing on climate finance. Developing nations, excluding China, will need an estimated $1.3 trillion a year by 2035 in financial assistance to transition to renewable energy and climate-proof their economies from increasing weather extremes. Nowhere near this amount has been committed. At last year's UN COP29 summit in Azerbaijan, rich nations agreed to increase climate finance to $300 billion a year by 2035, an amount decried as woefully inadequate. Azerbaijan and Brazil, which is hosting this year's COP30 conference, have launched an initiative to reduce the shortfall, with the expectation of "significant" contributions from international lenders. But so far only two -- the African Development Bank and the Inter-American Development Bank -- have responded to a call to engage the initiative with ideas, said COP29 president Mukhtar Babayev. "We call on their shareholders to urgently help us to address these concerns," he told climate negotiators at a high-level summit in the German city of Bonn this week. "We fear that a complex and volatile global environment is distracting" many of those expected to play a big role in bridging the climate finance gap, he added. - A 'worrisome trend' - His team travelled to Washington in April for the IMF and World Bank's spring meetings hoping to find the same enthusiasm for climate lending they had encountered a year earlier. But instead they found institutions "very much reluctant now to talk about climate at all", said Azerbaijan's top climate negotiator Yalchin Rafiyev. This was a "worrisome trend", he said, given expectations these lenders would extend the finance needed in the absence of other sources. "They're very much needed," he said. The World Bank is directing 45 percent of its total lending to climate, as part of an action plan in place until June 2026, with the public portion of that spilt 50/50 between emissions reductions and building resilience. The United States, the World Bank's biggest shareholder, has pushed in a different direction. On the sidelines of the April spring meetings, US Treasury Secretary Scott Bessent urged the bank to focus on "dependable technologies" rather than "distortionary climate finance targets." This could mean investing in gas and other fossil fuel-based energy production, he said. Under the Paris Agreement, wealthy developed countries -- those most responsible for global warming to date -- are obliged to pay climate finance to poorer nations. Other countries, most notably China, make voluntary contributions. - Money matters - Finance is a source of long-running tensions at UN climate negotiations. Donors have consistently failed to deliver on past finance pledges, and have committed well below what experts agree developing nations need to cope with the climate crisis. The issue flared up again this week in Bonn, with nations at odds over whether to debate financial commitments from rich countries during the formal meetings. European nations have also pared back their foreign aid spending in recent months, raising fears that budgets for climate finance could also face a haircut. At COP29, multilateral development banks (MDBs) led by the World Bank Group estimated they could provide $120 billion annually in climate financing to low and middle income countries, and mobilise another $65 billion from the private sector by 2030. Their estimate for high income countries was $50 billion, with another $65 billion mobilised from the private sector. Rob Moore, of policy think tank E3G, said these lenders are the largest providers of international public finance to developing countries. "Whilst they are facing difficult political headwinds in some quarters, they would be doing both themselves and their clients a disservice by disengaging on climate change," he said. The World Bank in particular has done "a huge amount of work" to align its lending with global climate goals. "If they choose to step back this would be at their own detriment, and other banks like the regionally based MDBs would likely play a bigger role in shaping the economy of the future," he said. The World Bank declined to comment on the record.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store