TLDR
- Xpeng and Li Auto gained approval to test Level 3 autonomous systems on urban roads in Guangzhou and Beijing.
- Level 3 tech allows hands-free driving under conditions but requires drivers to stay alert for possible intervention.
- Regulators approved Changan and BAIC for L3 model assembly one day earlier under the same restricted operation program.
- China’s vehicle sales fell in November, but overall 2024 deliveries rose 6.1% to 21.5 million units.
- Analysts say consumer demand for automation remains high, with several carmakers preparing L3 models for production.
China has approved Xpeng and Li Auto to begin public testing of Level 3 autonomous driving systems. The approvals arrive as regulators move to support advanced driving technologies during weaker car sales. Authorities granted access to limited urban zones for controlled testing. The decision follows similar approvals issued to other domestic automakers.
Xpeng and Li Auto Cleared for Urban L3 Road Tests
Chinese regulators granted Xpeng permission to test Level 3 systems on selected roads in Guangzhou. Li Auto received approval to conduct similar tests within designated areas of Beijing. Industry officials confirmed the approvals but did not provide technical deployment timelines. Both companies declined to comment when contacted regarding test schedules.
Level 3 systems allow hands-free driving under defined conditions but require drivers to remain alert. The classification follows standards set by SAE International for autonomous driving technologies. Drivers must intervene when systems request control or when conditions change. Current rules still limit L3 operation to approved locations.
The approvals followed the issuance of licenses to Changan Automobile and BAIC the previous day. Those automakers also received clearance to assemble models equipped with Level 3 systems. The Ministry of Industry and Information Technology confirmed the broader regulatory framework. Vehicles participating in the program must operate only within specified zones.
Policy Support Expands as Market Conditions Remain Weak
The approvals come as China’s car market shows slower momentum across segments. November vehicle sales fell 8.1 percent year-on-year to 2.23 million units. According to the China Passenger Car Association, sales also declined 1.1 percent from the previous month. Despite the slowdown, total vehicle deliveries rose 6.1 percent during the first eleven months. Deliveries reached 21.5 million units across mainland China.
Analysts expect regulatory support to help stabilize demand. Advanced driver assistance features remain a focus for automakers. “Self-driving technologies can drive car sales,” said Tian Maowei of Yiyou Auto Service. He said many consumers expect autonomous vehicles soon. Tian added that several manufacturers consider their Level 3 systems ready.
Carmakers have prepared multiple models for launch as regulators said certified companies may produce more Level 3 models after safety verification. Changan and BAIC vehicles can currently operate on urban roads and highways. Authorities will assess system performance during the testing process. Further production approvals will depend on reliability results.
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