Tag: China EVs

  • In 2025, 66% of New EVs in China Will Feature Self-Driving Tech

    In 2025, 66% of New EVs in China Will Feature Self-Driving Tech

    China is poised for a significant advancement in self-driving technology. This year, 15 million new electric vehicles (EVs) will be fitted with Level 2 (L2) autonomous driving capabilities. Even affordable models with prices below 100,000 yuan (US$13,914) will now feature basic self-driving functions. This swift expansion is fueled by a decrease in the cost of Advanced Driver Assistance Systems (ADAS), making these advanced features more attainable for regular consumers.

    Future Projections

    By 2025, it is expected that two-thirds of new cars in China will possess L2 or more sophisticated autonomous features. L2 systems can manage steering, acceleration, and braking, but they still require the driver to remain attentive. More advanced L3+ features, which enable hands-free driving under specific conditions, are also on the rise, while complete automation (L4 and L5) is still in the works.

    Effects on the Automotive Sector

    The electric vehicle sector in China is continuing to grow, with 22.9 million cars delivered in 2024, representing a 5.5% increase from the previous year. The widespread acceptance of self-driving technology is likely to transform the global automotive landscape, with autonomous trucks predicted to save Chinese firms around 1.8 trillion yuan each year by 2030. The price of ADAS has dropped to about 10,000 yuan per unit, and Lidar sensors, critical for environmental mapping, have decreased from thousands of dollars to merely US$200 per unit over five years. As technology becomes less expensive, more car manufacturers are including self-driving features in their models.

    Competitors in the Market

    Although Tesla continues to lead in self-driving technology on a global scale, it faces significant hurdles in China. The company reached record sales in China by the end of 2024, but is dealing with intense competition from domestic EV manufacturers such as BYD. A worldwide price war in the EV market has also squeezed Tesla’s profit margins, with Q4 revenue not meeting forecasts. Tesla’s main obstacle in China is regulatory limitations. The Chinese government does not permit Tesla to send self-driving training videos overseas, and U.S. regulations restrict AI training activities in China. These challenges have hindered Tesla’s progress with its Full Self-Driving (FSD) technology in the nation.

    Ongoing Developments

    Despite these obstacles, Tesla is pushing forward with its self-driving initiatives in other regions. The company aims to introduce unsupervised autonomous driving in Austin, Texas, and various other U.S. cities by late 2025. Nevertheless, its prospects in China remain uncertain due to economic and political pressures. With self-driving technology becoming a norm in millions of vehicles across China, the nation is solidifying its role as a frontrunner in the future of autonomous transportation.