China's Electric Vehicle (EV) technology has already matched that of Western countries, and now its autonomous driving technology is also catching up.
According to the Wall Street Journal (WSJ), Baidu's self-driving robotaxi project is developing rapidly. The Advanced Driver Assistance Systems (ADAS) of Chinese EV manufacturers such as XPeng, Li Auto, and NIO are also gaining significant attention.
XPeng Motors recently launched its flagship autonomous driving suite through an online upgrade, making it available for use on all public roads in China. Owners praised XPeng's flagship suite, XNGP, for its features, which are comparable to Tesla's Full Self-Driving (FSD).
Both companies rely on artificial intelligence rather than maps and programming. Like Tesla, XPeng has also abandoned expensive lidar technology in favor of cameras.
According to the classification of autonomous driving levels, ADAS is only at Level 2. These systems still require continuous human supervision.
However, Chinese regulatory agencies appear to be encouraging the development of higher-level autonomous driving technology. In June 2024, China's Ministry of Industry and Information Technology announced that it had approved nine automakers, including BYD, to test Level 3 autonomous driving technology on public roads.
Counterpoint analysts predict China will dominate Level 3 autonomous vehicles in the coming years. Although Mercedes-Benz and BMW also sell highly conditional Level 3 systems in Germany, with Mercedes even launching in the United States, their progress still lags behind China.
Tesla is a pioneer in the EV field, but the company only sells a limited version of its flagship FSD in China. Chinese automakers, particularly BYD, are already leading in large-scale commercialization, and China's autonomous driving technology might follow a similar trajectory.
In April 2024, Tesla CEO Elon Musk visited China, and the Chinese government publicly stated its support for Tesla in the local promotion of FSD. This support could benefit Chinese companies as well, as Tesla may have to collaborate with local firms such as Baidu. Since the collected driving data will be stored in China, it will help train local autonomous driving systems.
