Around 15 million new vehicles hitting the roads in China in 2025 will feature Level 2 (L2) autonomous driving technology, including affordable models priced below $13,790. This technology allows cars to control acceleration, braking, and steering but still requires driver attention.
The system’s growing popularity is driven by decreasing costs and intense competition among automakers striving to stand out in a highly competitive market. It is expected that by the end of this year, two-thirds of new vehicles sold in the country will have this technology or a higher level.
Manufacturers like BYD are planning to integrate advanced driver assistance systems (ADAS) into more affordable models, speeding up the adoption of this technology. Currently, most ADAS-equipped cars in China cost over $20,685, but advances in production and the decreasing cost of components like LiDAR sensors have helped reduce prices.
Experts say this democratization of autonomous driving could boost sales, as Chinese drivers, especially younger ones, show a strong interest in smart driving experiences.
Beyond transforming the automotive market, automation could have a significant economic impact, with labor cost reductions estimated at around $248.2 billion by 2030 due to the growing use of autonomous trucks. Meanwhile, Chinese companies are working to catch up with Tesla, whose “Full Self-Driving” (FSD) system is not yet approved in China but is expected to begin testing soon.
The advancement of this technology in China marks a shift in the global automotive industry, solidifying the country as one of the leading hubs for smart vehicle innovation.
Source: South China Morning Post | Photo: Freepik | This content was created with the help of AI and reviewed by the editorial team