China’s Zeekr, Xpeng Unveil Level 3 Autonomous Cars in Tech Race

Escalating Competition in China’s Smart Driving Market

Chinese automakers Zeekr Group and Xpeng have announced plans to launch electric vehicles featuring advanced Level 3 autonomous driving technology, intensifying the competition in China’s rapidly evolving automotive landscape. This move marks a significant shift from the industry’s previous focus on Level 2 systems, where drivers must remain fully attentive, to Level 3 autonomy, which allows hands free driving under specific conditions. Alongside Guangzhou Automobile Group (GAC), these companies are positioning themselves at the forefront of a technological revolution, aiming to capture the growing demand for smart driving solutions in the world’s largest auto market. Their announcements underscore how a brutal two year price war is giving way to a fierce battle over cutting edge autonomous driving technology, with implications for both consumers and the global EV industry.

Zeekr revealed that its highly anticipated 9X sport utility vehicle, equipped with Level 3 ready autonomous driving capabilities, will debut at the Shanghai autoshow in April 2025, with deliveries slated to begin in the second half of the year. The company’s CEO, Andy An, emphasized the vehicle’s advanced features, including five lidars and a driving domain controller powered by two Nvidia Thor chips, which significantly boost safety but also increase production costs. This investment reflects Zeekr’s commitment to meeting the stringent requirements of Level 3 autonomy, where the vehicle can manage driving tasks without human supervision in designated scenarios, though drivers must be prepared to intervene within seconds if needed. Meanwhile, Xpeng shared during a post earnings analyst call that it will roll out Level 3 level software capabilities by mid 2025, with plans to mass produce models featuring Level 4 ready technology by 2026. Xpeng’s XNGP urban self driving system, which boasts 100 percent mapless driving and relies on AI powered perception, positions it as a leader in scalable autonomous solutions. GAC, on the other hand, announced at a company event that it will introduce Level 3 ready models in 2025 while simultaneously developing Level 4 systems, leveraging its Garcia Intelligent Driving System to compete in complex urban environments.

The auto industry classifies autonomous driving into five levels, from basic cruise control at Level 1 to fully self driving cars at Level 5. Level 3, often referred to as conditional automation, represents a critical milestone, enabling drivers to take their eyes off the road and hands off the wheel for extended periods, provided they remain alert to take control when prompted. Globally, Level 3 technology has been limited to trial phases, but China is accelerating its adoption. In June 2024, the country greenlit nine automakers, including BYD, Nio, Changan Automobile, and GAC, to conduct public road tests for Level 3 vehicles. These trials are a prerequisite for regulatory approval, which Zeekr, Xpeng, and GAC must secure before their Level 3 features can be activated for consumer use. Chinese regulations also stipulate that automakers bear legal liability for accidents caused by Level 3 system failures, a stark contrast to Level 2 systems like Tesla’s Full Self Driving, where drivers remain fully responsible.

This push toward Level 3 autonomous driving technology in China reflects a broader market shift. For years, smart driving features were premium add ons, reserved for high end models. However, BYD disrupted this trend last month by offering advanced autonomous systems across most of its lineup at no extra cost, prompting competitors to rethink their strategies. Zeekr, Xpeng, and GAC’s latest moves suggest that autonomous driving technology could soon become a standard feature, even in mid range electric vehicles, as companies vie to differentiate themselves in a crowded market. For consumers, this evolution promises safer and more convenient driving experiences, particularly in scenarios like heavy traffic or long highway stretches, where Level 3 systems can reduce fatigue. Yet, the technology’s transitional nature, requiring driver readiness, has sparked debate about its practicality and safety, with some experts arguing that the shift to Level 4, where human intervention is rarely needed, may ultimately prove more transformative.

Xpeng’s approach stands out for its reliance on AI driven solutions over costly hardware. Its XNGP system, enhanced by the AI Hawkeye Visual Solution, uses high definition cameras and advanced algorithms to navigate without pre mapped data, cutting costs while maintaining performance. This contrasts with Zeekr’s hardware heavy strategy, which leans on multiple lidars and Nvidia’s powerful Thor chips to ensure robust safety under Level 3 conditions. GAC, meanwhile, is carving its own path with the Garcia system, an image based platform designed to excel in real time decision making and traffic signal recognition, reducing dependence on expensive sensors. These divergent approaches highlight the diversity of innovation in China’s autonomous driving sector, as each company tailors its technology to balance cost, scalability, and reliability.

The regulatory landscape will play a pivotal role in determining how quickly these advancements reach consumers. China’s proactive stance, evidenced by its 2023 pilot program for Level 3 and Level 4 vehicles and upcoming 2025 mandates for software upgrade approvals, signals strong government support for autonomous driving technology adoption. Forecasts suggest that by 2025, Level 3 vehicles could enter mainstream production, with Level 4 models following in select scenarios, potentially reshaping urban mobility. Globally, this positions Chinese automakers ahead of competitors like Tesla, which is still navigating regulatory hurdles for its Full Self Driving system in China, and Toyota, which plans to launch an advanced self driving EV in the market by 2025.

For the industry, the stakes are high. The integration of Level 3 autonomous driving technology into mass market electric vehicles could drive significant R&D investment, spur partnerships with tech giants like Nvidia and Mobileye, and accelerate the development of Level 4 systems. Consumers stand to gain from enhanced safety features, reduced driver workload, and potentially lower insurance costs as autonomous systems prove their reliability. However, challenges remain, including public trust in semi autonomous technology and the need for infrastructure upgrades to support higher autonomy levels. As Zeekr, Xpeng, and GAC push forward, their efforts are likely to set a new benchmark for smart driving technology, not just in China but worldwide, signaling a future where autonomous vehicles play a central role in everyday transportation.