BYD begins autonomous driving L3 testing as China’s autonomous driving L3 expands
China’s Level 3 (L3) autonomous driving sector is showing signs of broader industry activity, with automakers such as BYD advancing L3 systems alongside recent regulatory moves and testing authorisations. Commentary in Chinese automotive media has noted that L3 technology occupies a defined position between widely deployed Level 2 driver-assistance functions and more advanced Level 4 automation, and that recent developments reflect changes in both regulatory practice and industry readiness.
Financial reporting from domestic outlets indicates increased market attention to companies and technologies associated with autonomous driving. Analysts have observed that equities linked to autonomous driving systems and related suppliers have traded more actively in response to regulatory signals. Some financial commentary has connected this activity to the introduction of production‑ready L3 systems entering pilot operations and to expectations that these demonstrations could influence future investment decisions.
Chinese automotive media have also reported on regulatory measures that enable controlled public-road use of L3 systems in select areas. These reports restate that vehicles with conditional autonomous driving functions are beginning pilot operations under defined conditions and that various stakeholders are monitoring these trials as part of developing operational frameworks for intelligent connected vehicles in the country.
In addition to the vehicles that received national product access approvals, other manufacturers are advancing their L3 programs through localised road-testing authorisations. As reported, MIIT has approved the Changan Deepal SL03 and Arcfox Alpha S L3 for conditional pilot operations on designated roads, marking China’s first authorised L3 production vehicles. Reports indicate that Xpeng Motors has obtained L3 road test permits in Guangzhou and is conducting regular tests in designated zones. Li Auto has reportedly secured L3 autonomous-driving test permits in Beijing and is conducting test runs on selected routes. These road test permits are distinct from national product approvals but contribute to a broader set of real‑world data-collection efforts.
Separately, Chinese media report that BYD has begun large-scale internal testing of L3 autonomous-driving functions in Shenzhen, in cooperation with local transport authorities. According to these reports, the testing is being conducted on approved expressways and urban fast roads. It has accumulated more than 150,000 kilometres of real-world driving data across conditions, including nighttime, rain, and construction zones. BYD was previously included in the first group of enterprises selected by multiple central government departments to participate in L3 autonomous driving access and road-use pilot programmes.
Huawei’s autonomous driving initiative, Harmony Intelligent Mobility Alliance (HIMA), has begun internal L3 testing in Shenzhen in collaboration with local authorities. These activities are part of ongoing efforts to assess system behaviour in real-world traffic environments, which could inform future regulatory adjustments and technology iterations.
Economic coverage in China has placed recent developments within the context of national policy coordination. Multiple government departments have issued planning documents and guidelines on intelligent connected vehicles, focusing on establishing safety, technical, and legal standards to align testing, pilot operations, and future commercialisation phases within an orderly regulatory framework.
Updated: 17/12/2025 17:15 China time to include BYD’s L3 update
