As Chinese carmakers rapidly shorten development timelines, concerns are growing about vehicle safety. In response, Chinese authorities have stepped in to tighten oversight of the industry's safety and testing procedures.
On the 31st (local time), Bloomberg reported that Chinese auto design firm IAT Automobile Technology and the China Association of Automobile Manufacturers (CAAM) estimated that as Chinese carmakers use artificial intelligence (AI), the time needed to bring entirely new models to market could be shortened to as little as 18 months.
While traditional foreign automakers typically take about three to five years to develop a model, Chinese carmakers' average development time had been about two years. That is now starting to shrink as well, creating what Bloomberg called "China speed," a new global benchmark that is forcing established auto brands into a fight for survival over market share.
Chinese carmakers are using AI to save time across dozens of development steps. For example, before building physical prototypes, they used AI to review digital design models to assess vehicle structure and functions. Previously, engineers had to perform this work themselves, checking tens of thousands of parts one by one.
The industry is debating whether compressed development schedules risk damaging the reputation of Chinese auto brands and whether that could pose problems as they expand into overseas markets such as Europe.
Li Xueyong, a vice president at Chery Automobile Co., said in a post on social media on the 26th, "A car is not a fast-turnover consumer good. It is directly tied to the safety of millions of households and must withstand diverse road conditions, climates, and driving habits around the world," adding, "There are certainly development timelines that should never be shortened, no matter what."
Chinese regulators are also responding strongly to safety concerns. To allay worries that quality could decline in the pursuit of speed, they have launched a yearlong enforcement campaign against carmakers that includes unannounced inspections. In a break from past practice, the Ministry of Industry and Information Technology is promptly disclosing which companies were inspected after on-site checks. At least five major automakers were inspected in July alone.
Recently, after reports that batteries in some vehicles from Aion, the electric-vehicle brand of Guangzhou Automobile Group Co. (GAC Group), developed problems after accumulating 150,000 km of driving, the Ministry of Industry and Information Technology conducted an on-site inspection of the company. Aion has said it is repairing or replacing the affected batteries free of charge.
Authorities are also pushing to double the mandatory real-road testing distance for new energy vehicles to 30,000 km. The measure is intended to address concerns that shorter development processes could weaken safety standards and consumer confidence. In China, recent high-profile fatal accidents have also led to tighter regulations on batteries, advanced driver-assistance systems (ADAS), and car door handles.
Some see rapid development as proof of Chinese firms' competitiveness. Lu Fang, chair of the Dongfeng Motor Corporation Voyah brand, argued that if all required tests are completed even with fast development, it simply demonstrates efficiency.
But others say Chinese carmakers can hardly afford to slow down. Falling sales and rising raw material prices are further pressuring profit margins that are already thin across the supply chain.
Earlier, Li Shufu, chair of Zhejiang Geely Holding Group Co., said in an interview with state broadcaster CCTV in June, "I think it is unrealistic to ask anyone to slow down. Everyone is competing to get ahead," adding, "Such demands may be too difficult. If someone told me to slow down, I don't think I would say 'I will.'"
Bloomberg said, "There is also a possibility that the auto industry's polarization will intensify as the expense of meeting stricter standards rises," adding, "Smaller companies may fall behind in competition with large manufacturers that have mature management systems and ample capital."