China mandates regulatory approvals for autonomous driving software upgrades

BEIJING (Reuters) - Autonomous driving-related over-the-air software upgrades will be subject to regulatory approvals, China's industry ministry said on Friday, part of new regulations aimed at preventing automakers using them to conceal defects or avoid liability.

Electric vehicle makers including Tesla and Xiaomi have used OTA upgrades to fix software bugs. Such upgrades are called product recalls under China's regulation, but it's often unclear if drivers might need, or would be eligible, to return vehicles to the automakers for refunds.

Those planning OTA upgrades to eliminate product defects and implement recalls should "immediately stop the manufacture and sales of defective automobile products," the regulation stipulates.

If changes to the main technical parameters are needed to fix the defects, automakers are required to obtain a license for the product change before resuming their production of the affected vehicle.

Automakers are banned from naming and marketing driving assistance systems with hints to consumers that they can be used as autonomous driving systems, according to the regulation.

They are also required to report to the industry ministry and the market regulator in case of driving assistance system failure or collisions and other accidents.

(Reporting by Beijing newsroom; Editing by Jan Harvey and Philippa Fletcher)

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