China is tightening vehicle homologation rules. An end to “aggressive” new models without testing.
The Chinese Ministry of Industry and Information Technology, MIIT, announced that vehicles and systems that have not passed proper testing and validation will be phased out of the market. The statement was made on August 26, 2026, at a press conference held by the State Council, and it applies not only to manufacturing quality but also to the safety of autonomous driving systems.
For manufacturers, this is a clear message: less showmanship in presentations and more real testing before introducing such systems into production vehicles.
MIIT: Some manufacturers install overly ambitious solutions too early
Xin Guobin, vice minister of MIIT, explicitly said that “irrational competition” still exists in China’s automotive industry. According to the ministry, the problem lies in situations where aggressive design innovations end up in vehicles without sufficient testing and verification.
This is a fairly clear blow to the race among manufacturers to develop increasingly sophisticated ADAS functions and “smart” add-ons. Especially since the MIIT has simultaneously pointed out incidents related to vehicle quality and autonomous driving safety that have drawn public attention.
The ministry now plans to tighten the reviews for market approval, impose stricter requirements for testing new solutions, and conduct more frequent checks to ensure production meets certification standards. In short, it’s no longer enough to simply show off a new function. It will also be necessary to prove that it works properly and doesn’t cause problems after leaving the factory.
Plan for 2026-2030 and market regulation
The proposal has been included in the draft of the 15th five-year plan for intelligent and connected NEVs for the years 2026-2030. The document is intended to cover several areas: product quality, usage conditions, industry oversight, and international cooperation.
On a technical level, China aims to support companies in improving battery performance in low temperatures, as well as their durability, along with the safety and reliability of autonomous driving systems. At the same time, the country will continue to carry out market approval pilots and road tests for intelligent vehicles, as well as projects for road-cloud integration. In other words, the testing will continue, but with greater emphasis on accountability.
The second topic is the market itself. The MIIT plans to reform the management of manufacturers’ production capabilities, adjust industrial layout, and enforce stricter controls on production capacity and pricing policies. The goal is to curb what is increasingly referred to in China as “involutionary competition” — a zero-sum struggle that often comes at the expense of margins and quality.
Numbers also provide context. During the 14th Five-Year Plan period, annual NEV sales in China rose from 1.367 million to 16.49 million units, with their share of total new car sales jumping from 5.4% to 47.9%. China now accounts for over 70% of global production of NEVs, battery packs, and key materials, with its vehicles exported to more than 100 countries and regions.
The package also includes more practical measures: continuing vehicle exchange programs, promoting NEVs in rural areas, addressing gaps in charging and swapping infrastructure at the county and municipal levels, improving rules for vehicle modifications, changing policies for NEVs, and reducing repair costs.
For Europe, this is significant because Chinese brands are increasingly selling cars built under time pressure here. If Beijing truly tightens quality and validation standards, some models might simply become less risky for consumers. The question is whether regulation will outpace the race to add more “smart” features.
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