Chinese regulators have approved the nation’s first two Level 3 (L3) electric vehicles, allowing drivers to go “hands-off” in select urban and highway zones. This move by Beijing bolsters China’s lead in the global self-driving market, where it holds over 60% of EV production.
The Ministry of Industry and Information Technology (MIIT) confirmed on Monday that Changan Automobile and BAIC can produce these pure-electric models in geofenced areas, advancing beyond L2 systems that require constant supervision.
“The two companies have passed the tests for the two models and relevant safety reviews,” the ministry said, vowing oversight to foster intelligent transport. No sales dates were given, but production can start now.
L3 permits temporary disengagement per SAE International standards, unlike full L5 autonomy. China eyes 50% L3 adoption by 2030.
“The approvals showed that authorities were willing to deregulate the market,” said Phate Zhang of CnEVPost. “Officials are likely to take a step-by-step approach in distributing more manufacturing licences to other carmakers.”
Changan’s model handles city streets at 50 km/h; BAIC’s Arcfox tackles expressways at 80 km/h. Two-thirds of 2025 mainland cars have L2+ tech, per China EV100’s Zhang Yongwei.
Hesai Group’s CFO Andrew Fan noted last month that China’s auto sector was prepped for L3, with its US$500–1,000 lidar sensors in high demand. Rivals like Geely’s Zeekr and Huawei-backed Seres follow closely, amid McKinsey’s forecast of Chinese EVs dominating top-10 global spots by 2030.