In Depth: China Writes a Stricter Rulebook for a Changing Auto Industry

Regulators aim to steer a safer course as new-energy vehicle sales surge and autonomous driving takes to the road

The rapid adoption of new-energy vehicles (NEVs) in China has prompted regulators to introduce new rules and standards to address battery safety, intelligent driving and cybersecurity to ensure sustainable growth and protect consumers.

In September, China’s NEV sales reached 1.12 million, capturing 54.3% of the new passenger car market and outpacing fuel-powered vehicles for three consecutive months, according to the China Passenger Car Association. Motorists now scrutinize NEVs with the same expectations they hold for conventional cars.

Safety has become a top concern. A fire in South Korea in August in which a Mercedes-Benz electric car burst into flames in a parking garage caused extensive damage and led to temporary bans on NEVs in public underground parking lots in China. Battery fires pose unique challenges as they burn faster and more intensely than conventional engine fires, making them difficult to control in confined spaces.