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Xiaomi issues software update for 115,000 SU7 sedans over assisted driving risks

China’s Xiaomi will roll out a software update affecting more than 115,000 SU7 electric sedans to fix potential safety issues linked to its assisted driving system, according to a recall notice from the State Administration for Market Regulation (SAMR). The fix, delivered via over-the-air (OTA) update, marks the second time the model has been subject to recall protocols since its launch last year.

Regulators said the SU7’s Level 2 highway pilot system may not provide adequate early warnings or perform properly in extreme scenarios. The issue affects 116,887 standard SU7s manufactured between February 2024 and August 2025. Xiaomi confirmed the OTA update would be pushed out starting Friday.

China requires regulatory approval for OTA updates tied to autonomous driving, to ensure automakers cannot conceal defects or evade liability. The move comes as Beijing finalizes new safety rules for Level 2 automation, set to take effect in 2027. The draft standards were prompted in part by a fatal March accident involving a SU7 that caught fire after hitting a highway pole, just seconds after the driver disengaged the assistance system.

Level 2 automation allows the car to handle steering, acceleration, and braking, but still requires drivers to maintain constant attention. Analysts say China’s stricter oversight reflects both the growing popularity of advanced driver-assistance systems and heightened public concerns about road safety.

China Urges Cautious but Rapid Development of Assisted-Driving Technology

China’s automakers are rapidly advancing assisted-driving technology, eager to capture a growing market. However, Beijing is pushing for a balanced approach—accelerate innovation but ensure safety and accountability.


Key Points:

  • Rapid Innovation, Careful Oversight: Chinese regulators are finalizing new safety rules for driver-assistance systems following a fatal crash involving a Xiaomi SU7 sedan in March, which killed three occupants shortly after the driver resumed control from the system.

  • Regulatory Approach:

    • China bans terms like “smart” and “autonomous” in marketing to avoid overselling capabilities.

    • Current rules allow automatic steering, braking, and acceleration only with driver engagement.

    • New regulations will require hardware/software to monitor driver alertness and control readiness.

  • Collaboration and Public Input:

    • Regulators worked with Dongfeng and Huawei to draft rules, with public consultation ending recently.

    • Plans to resume Level 3 validation tests this year after being paused post-Xiaomi crash; the first Level 3 vehicle approval expected in 2026.

  • Level 3 Ambitions:

    • Level 3 allows drivers to take eyes off the road under certain conditions—midway between basic driver-assist and full autonomy.

    • China has promoted Level 3 tests and aims to be a global leader in assisted-driving tech.

  • Industry Competition:

    • China’s automakers like BYD and Zeekr are aggressively pushing Level 2 and Level 3 tech, often offering features at low or no additional cost.

    • At the Shanghai auto show, Huawei and Geely’s Zeekr highlighted Level 3 readiness.

    • Traditional foreign automakers like Mercedes-Benz and Volkswagen focus on advanced driver-assist features but hold back on Level 3 due to higher costs and liability concerns.

  • Safety and Liability:

    • New regulations hold manufacturers and suppliers liable for accidents caused by system failures, similar to recent UK legislation.

  • Strategic Context:

    • China is using this push to support its domestic auto industry, much like its earlier backing of electric vehicles.

    • Over 60% of new cars sold in China this year are estimated to include Level 2 driver-assist features.


Expert Insights:

Markus Muessig of Accenture Greater China notes that China’s “feel the stones to cross the river” approach—steady, cautious exploration of new tech—has been effective. Meanwhile, Mercedes-Benz’s CTO Markus Schaefer highlights the ongoing challenges with balancing cost and safety requirements for Level 3 systems.