China will steadily expand the use of intelligent connected vehicles while cautiously advancing market access and road trials, Vice Minister of Industry and Information Technology Xin Guobin said at the opening ceremony of the 2026 World Intelligent Connected Vehicles Conference on October 21 in Beijing.

The ministry will accelerate large-scale demonstrations of autonomous driving in key settings as the industry works to overcome technical challenges and bring technologies into commercial use, Xin said.

China's first batch of Level 3 conditional automated driving models has begun road trials in designated areas, according to information released at the ceremony.

Speaking at the same event, Wan Gang, honorary president of the China Association for Science and Technology, said more than 70% of new passenger vehicles in China were equipped with Level 2 driver assistance in the first half of 2026. He expected the share to exceed 95% by 2030, citing falling sensor and system costs and advances in large AI models.

Wan also forecast that Level 3 automated driving penetration would exceed 35% by 2030.

Level 2 systems assist with steering and acceleration or braking while drivers remain fully engaged. Level 3 systems can handle driving under specified conditions, with drivers required to take over when necessary.

China has opened 57,000 kilometers of roads for testing and demonstration, deployed more than 60,000 sets of intelligent equipment and recorded over 220 million kilometers of testing. Wan said more than 20,000 testing and demonstration license plates had been issued as of June.

Xin highlighted advances in computing chips and technologies integrating cockpit and driving functions, alongside wider use of high-performance lidar sensors and electronically controlled chassis systems.

However, as intelligent connected vehicles move into real-world use, they face higher requirements for safety, reliability and regulatory coordination, he said.

In September, the ministry and other departments jointly issued a development plan for the intelligent connected new energy vehicle industry for the 15th Five-Year Plan period, setting out goals and priority tasks.

The ministry will support industry-led research partnerships in power systems, intelligent chassis and connected vehicle technologies while strengthening basic research and shared technology platforms.

It will also upgrade connected infrastructure and expand pilot programs linking vehicles, roads and cloud computing, bringing automotive development closer together with telecommunications, energy, transport and urban management.

On safety, the ministry will promote the implementation of mandatory national standards for autonomous driving and develop standards for automated parking, operational monitoring and data security.

Xin also pledged efforts to improve vehicle quality, regulate market competition and protect consumers' rights, alongside international cooperation to better align domestic standards with global rules.