What does Guangdong’s new policy support?

  • An implementation plan for expanding consumption issued by the Guangdong Provincial Development and Reform Commission calls for stronger support for intelligent connected vehicles and encourages automakers to seek pilot approval for L3 autonomous vehicles and permission to operate them on public roads in accordance with regulations.
  • The plan also calls for the orderly development of intelligent driving tests and commercial operations in the Greater Bay Area, providing local policy support for vehicles to move from testing to operation.

How is the nationwide institutional framework for commercialization changing?

  • The report says industry plans call for vehicles equipped with autonomous driving functions to be deployed at scale by 2030; vehicle-road-cloud integration is a key element of China’s approach, and the first batch of 20 pilot cities has entered the large-scale construction phase.
  • Approvals and standards are also advancing: the first batch of L3 vehicles received approval permits at the end of 2025; in August 2026, mandatory national standards for L3 and L4 autonomous driving systems were issued, establishing a common safety baseline for product approval.
  • The draft revision of the Road Traffic Safety Law has completed its initial review. It includes special provisions on autonomous vehicles covering the conceptual boundaries between autonomous and assisted driving, companies’ liability for violations, and compulsory insurance.

How far have demand growth and deployment at scale progressed?

  • According to Ministry of Industry and Information Technology data, since the start of 2026, the penetration rate of passenger vehicles equipped with L2 combined driver assistance functions has reached 70.5%, with navigate-on-autopilot (NOA) functions at 34.2%. These figures reflect the prevalence of driver assistance.
  • Analysts believe policy, technology and demand are jointly accelerating China’s transition from autonomous driving demonstrations to commercial deployment at scale. The report says China’s autonomous driving market was worth 450.2 billion yuan in 2025, up 17.5% year on year, and forecasts it will reach 529.3 billion yuan in 2026.
  • The report also observes that private-market financing is concentrating on segments with greater commercialization certainty, while public-market valuations are shifting from technology narratives to verification of commercial deployment.

What progress have related companies made?

  • In response to requirements for smaller, lower-cost onboard terminals, Huali Chuangtong is researching satellite communications applications in the Internet of Vehicles and has completed development of a series of onboard Tiantong communications terminals.
  • SmartSens Technology-W continues to deepen cooperation with several mainstream automakers in automotive electronics. SAIC is one of its important customers.