In recent years, with the rapid advancement of intelligent connected vehicle (ICV) technology, autonomous driving systems have become a core competitive focus for enterprises. However, this technological revolution has also introduced unprecedented legal risks and regulatory challenges. The issuance of the Notice on Further Strengthening the Management of Product Access, Recalls, and Online Software Upgrades for Intelligent Connected Vehicles (hereinafter referred to as the Notice) on February 25, 2025, marks the entry of the regulatory environment into a new phase characterized by heightened strictness and specificity. The recent suspension/pausing of Tesla’s Full Self-Driving (FSD) updates further highlights the critical importance of product access and compliance management for companies.
I. Key Regulatory Requirements and Challenges for Legal Compliance
1. Enhanced Product Access Requirements
According to the Notice vehicles equipped with Level 2 (L2) or higher autonomous driving functions and supporting OTA (Over-the-Air) updates must submit additional technical parameters to the Ministry of Industry and Information Technology (MIIT) for filing and be included in a rigorous production conformity management system. Companies are required to submit comprehensive test reports to ensure compliance with safety and technical standards. Tesla’s pause in the FSD rollout, mentioning the requirement to complete software approvals for HW3.0 and HW4.0 hardware, precisely illustrates this increasingly strict product access regulation.
2. Further Refinement of Recall Mechanisms
Companies must proactively report to regulatory authorities within stipulated periods if their intelligent connected vehicle products exhibit defects or accident risks and implement effective recall measures. The Notice particularly emphasizes that incidents involving airbags, irreversible safety devices, or causing personal injuries or fatalities must be reported within 24 to 48 hours of occurrence. This sets higher standards for corporate information management and emergency response mechanisms, necessitating clearly defined and comprehensive accident response and recall procedures.
3. Classified Regulation and Risk Management for OTA Updates
Regulators have categorized OTA updates with different levels of scrutiny, requiring companies to establish stringent safety assessment systems and upgrade traceability mechanisms. Specifically, updates involving significant changes in major technical parameters or Level 3 (L3) and above autonomous driving capabilities require prior authorization. Tesla’s FSD suspension incident exemplifies the practical application of OTA update approval mechanisms, reflecting regulators’ acute sensitivity to potential safety risks associated with OTA upgrades.
II. Corporate Strategies for Legal Compliance
1. Establishing a Comprehensive Compliance Governance System
Automotive manufacturers must establish dedicated regulatory compliance departments to monitor policy changes continuously, ensuring all product design, development, and manufacturing processes fully adhere to current regulatory requirements. Additionally, companies should introduce independent third-party audit institutions to conduct rigorous compliance and safety reviews before products enter the market.
2. Developing Efficient Accident Management and Risk Early Warning Mechanisms
Companies should set up independent safety incident monitoring and response systems to ensure swift reactions and appropriate handling during accidents. Participating in the regulatory authority’s "sandbox regulatory" pilot programs will enable early identification and mitigation of potential risks, thereby enhancing the company’s market adaptability in a complex regulatory environment.
3. Optimizing OTA Update Management and Technical Compliance
Companies must thoroughly optimize OTA update processes, including strictly enforcing pre-update safety risk assessments, functional safety testing, version management, and post-update user feedback analysis. Utilizing technological means to ensure complete traceability throughout the upgrade process will prevent unauthorized software modifications or other security vulnerabilities.
III. Regulatory Trends and Compliance Insights from the Tesla FSD Case
Tesla’s challenges in the Chinese market underscore the imperative for globally leading enterprises to adhere strictly to localized regulatory requirements. Despite its maturity in autonomous driving technology in North America, Tesla faces markedly different traffic environments and more rigorous compliance scrutiny in China. For other automotive manufacturers, this underscores the necessity of integrating compliance into core competitive capabilities, proactively establishing regulatory risk control systems, and enhancing resilience amid intense competition through technology localization and data compliance.
[Comment]
As China’s market regulatory framework continues to mature, the legal regulation of intelligent connected vehicles will become increasingly detailed and stringent. Only by thoroughly understanding and proactively adapting to new regulatory norms can companies achieve a dynamic balance between technological innovation and safety compliance, thereby securing long-term competitive advantages. Automotive manufacturers must continually monitor regulatory developments, intensify compliance management efforts, leverage compliance for growth, and secure market success through enhanced safety standards.
I. Key Regulatory Requirements and Challenges for Legal Compliance
1. Enhanced Product Access Requirements
According to the Notice vehicles equipped with Level 2 (L2) or higher autonomous driving functions and supporting OTA (Over-the-Air) updates must submit additional technical parameters to the Ministry of Industry and Information Technology (MIIT) for filing and be included in a rigorous production conformity management system. Companies are required to submit comprehensive test reports to ensure compliance with safety and technical standards. Tesla’s pause in the FSD rollout, mentioning the requirement to complete software approvals for HW3.0 and HW4.0 hardware, precisely illustrates this increasingly strict product access regulation.
2. Further Refinement of Recall Mechanisms
Companies must proactively report to regulatory authorities within stipulated periods if their intelligent connected vehicle products exhibit defects or accident risks and implement effective recall measures. The Notice particularly emphasizes that incidents involving airbags, irreversible safety devices, or causing personal injuries or fatalities must be reported within 24 to 48 hours of occurrence. This sets higher standards for corporate information management and emergency response mechanisms, necessitating clearly defined and comprehensive accident response and recall procedures.
3. Classified Regulation and Risk Management for OTA Updates
Regulators have categorized OTA updates with different levels of scrutiny, requiring companies to establish stringent safety assessment systems and upgrade traceability mechanisms. Specifically, updates involving significant changes in major technical parameters or Level 3 (L3) and above autonomous driving capabilities require prior authorization. Tesla’s FSD suspension incident exemplifies the practical application of OTA update approval mechanisms, reflecting regulators’ acute sensitivity to potential safety risks associated with OTA upgrades.
II. Corporate Strategies for Legal Compliance
1. Establishing a Comprehensive Compliance Governance System
Automotive manufacturers must establish dedicated regulatory compliance departments to monitor policy changes continuously, ensuring all product design, development, and manufacturing processes fully adhere to current regulatory requirements. Additionally, companies should introduce independent third-party audit institutions to conduct rigorous compliance and safety reviews before products enter the market.
2. Developing Efficient Accident Management and Risk Early Warning Mechanisms
Companies should set up independent safety incident monitoring and response systems to ensure swift reactions and appropriate handling during accidents. Participating in the regulatory authority’s "sandbox regulatory" pilot programs will enable early identification and mitigation of potential risks, thereby enhancing the company’s market adaptability in a complex regulatory environment.
3. Optimizing OTA Update Management and Technical Compliance
Companies must thoroughly optimize OTA update processes, including strictly enforcing pre-update safety risk assessments, functional safety testing, version management, and post-update user feedback analysis. Utilizing technological means to ensure complete traceability throughout the upgrade process will prevent unauthorized software modifications or other security vulnerabilities.
III. Regulatory Trends and Compliance Insights from the Tesla FSD Case
Tesla’s challenges in the Chinese market underscore the imperative for globally leading enterprises to adhere strictly to localized regulatory requirements. Despite its maturity in autonomous driving technology in North America, Tesla faces markedly different traffic environments and more rigorous compliance scrutiny in China. For other automotive manufacturers, this underscores the necessity of integrating compliance into core competitive capabilities, proactively establishing regulatory risk control systems, and enhancing resilience amid intense competition through technology localization and data compliance.
[Comment]
As China’s market regulatory framework continues to mature, the legal regulation of intelligent connected vehicles will become increasingly detailed and stringent. Only by thoroughly understanding and proactively adapting to new regulatory norms can companies achieve a dynamic balance between technological innovation and safety compliance, thereby securing long-term competitive advantages. Automotive manufacturers must continually monitor regulatory developments, intensify compliance management efforts, leverage compliance for growth, and secure market success through enhanced safety standards.