At the Beijing Auto Fair, which opened recently, China pursues driverless technology as domestic car sales slow. Manufacturers are increasingly investing in artificial intelligence (AI) and seeking growth through technological advancements and overseas markets.
China pursues driverless: what to know
Showcasing Autonomous Driving Innovations
The Beijing Auto Fair, recognized as the world’s largest car exhibition, features hundreds of manufacturers and over 1,000 vehicles. Notably, many of these vehicles are being showcased without anyone behind the wheel, highlighting the industry’s focus on autonomous driving. Chinese car companies, having established a stronghold in the domestic electric vehicle (EV) market, are now turning their attention to what they believe is the future of mobility: self-driving technology.
At the fair, carmakers displayed a variety of intelligent driving technologies. In a highly competitive domestic market, nearly every major automaker is investing significantly in the software and computing power required to make “hands-free” driving a reality. This competition is driven by the need to offer additional features and find new revenue streams.
Investment in Autonomous Driving
Huawei, a leading telecommunications group, announced plans to invest up to 80 billion yuan (approximately £8.7 billion) over the next five years to develop its autonomous driving software and computing capabilities. According to Tu Le, managing director of Sino Auto Insights, the prevalence of intelligent driving systems among automakers in China sets it apart from other global markets. He noted that simply selling passenger vehicles is no longer a sustainable business model for Chinese companies, prompting them to explore additional revenue opportunities, such as leasing AI-powered software.
For instance, the EV maker Xpeng introduced a new AI model that allows drivers to issue commands like “park near the entrance to the shopping centre,” rather than specifying an exact location. Similarly, Xiaomi has developed an AI-powered operating system that enables drivers to make restaurant reservations, take notes while driving, and even order coffee. This system can also detect driver stress levels and adjust the vehicle’s lighting and music accordingly.
Market Challenges and Global Expansion
Despite the advancements in technology, domestic car sales in China have faced significant challenges. The number of passenger vehicles sold dropped by 17% in the first quarter of the year, largely due to the government phasing out a subsidy program. BYD, a leader in the EV sector, has reported seven consecutive months of declining sales. In contrast, China’s exports of vehicles surged by over 60% during the same period.
Chery, China’s largest car exporter, has set its sights on the UK market, where it has quickly become one of the fastest-growing car brands since its launch in August 2025. The company announced a goal of achieving 10 million global annual sales by 2030, up from 5 million in 2025. Farrell Hsu, the UK country director for Chery, emphasized the brand’s significant contribution to overall business growth.
Geely, another major player, revealed plans to deploy thousands of driverless taxis globally next year through its ride-hailing service, Caocao. This move positions Chinese companies to compete with US robotaxi firms like Waymo, which have successfully operated in cities such as San Francisco and Los Angeles. Although robotaxis have been introduced in several Chinese cities, their widespread adoption has been hindered by both regulatory and technical challenges.
Recently, the Chinese government concluded a public consultation on new safety standards for autonomous vehicles, as there are currently no nationwide guidelines. Beijing has been cautious about granting unrestricted access for driverless cars on its roads. For example, last month, several of Baidu’s Apollo Go robotaxis stalled in Wuhan, leaving passengers stranded for hours.
Despite these challenges, Chinese robotaxis are expected to make their debut in London this year, with partnerships between Baidu and ride-hailing services like Lyft and Uber to utilize its self-driving software. As tariffs in larger markets such as the US and EU pose obstacles, Chinese automakers are increasingly focusing on smaller markets like the UK and Canada to boost sales. Industry experts suggest that the UK is seen as more open to Chinese EVs compared to other countries that have imposed restrictions on national security grounds.
Looking ahead, Chinese companies are projected to account for one in every ten new cars sold in Britain by 2025. In February, Chery launched its fourth brand in the UK and is actively considering options for establishing production and research and development facilities in the country.