Automobile manufacturers holding a Chinese production license, including international companies, can apply for level 3 autonomous driving approval if they meet all stipulated requirements for both enterprises and products related to a pilot program for intelligent connected vehicles, people familiar with the matter said.

The sources, who are familiar with the approval process but declined to be named, said that subsequent L3 licensing will primarily depend on the safety, reliability, and technological maturity of the products, as well as the applying enterprises' systematic safety management capabilities.

The comments came after China's Ministry of Industry and Information Technology granted conditional road approval for two electric sedan models equipped with L3 autonomous driving capabilities in December, in the first time it has allowed such vehicle models to operate on public roads.

The approved models were developed by Changan Automobile and BAIC Motor's Arcfox brand.

Changan and BAIC are among a batch of joint groups in a pilot program for access approval and road testing of intelligent connected vehicles in China, the sources added.

The pilot program was initiated as early as 2023 by several ministries, including MIIT and the Ministry of Transport, to accelerate the development of intelligent connected vehicles and boost local innovation.

Other participants in the pilot program include BYD, Nio, FAW Group, and SAIC, according to the sources.

The program is not limited to passenger vehicles. It also covers trucks and buses. Participating manufacturers include heavy-duty truck maker SAIC Hongyan and bus builder Yutong Bus, the sources added.

"The approval of the first batch of L3 licenses marks a significant milestone in the development of intelligent connected vehicles," said Yang Ming, a professor at Shanghai Jiao Tong University.

From technical perspective, in recent years, continuous improvements in computing power, sensor solutions, and large language models, along with a significant reduction in the cost of core hardware such as lidar, have collectively driven the maturity of the industry chain. These factors have laid a solid foundation for the implementation of L3 autonomous driving, Yang added.

"China and the United States are at the global forefront in intelligent driving, with Europe also striving to catch up, indicating a clear competitive landscape," Zhang Yongwei, president of China EV100, a Beijing-based industry think tank, said.

He said the official approval of L3 autonomous driving models represents a crucial step toward the industrialization of the technology.

"Only by conducting pilot programs, validating technology in real-world scenarios, and ensuring robust verification can a foundation be laid for subsequent large-scale application," Zhang stressed.

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