China is producing cars so fast that Regulators are starting to Worry

Chinese automakers' drive to shorten vehicle development cycles is facing increasing scrutiny from regulators as concerns mount that such speed could negatively impact safety and quality, Bloomberg reports.

According to industry estimates, artificial intelligence can reduce the development time of a new model to about 18 months, compared with about two years today and three to five years for many traditional foreign manufacturers. However, Chinese regulators are stepping up oversight through snap inspections of factories, stricter regulations on batteries and driver assistance systems, new standards for door handles, and proposals to double mandatory road tests for new-energy vehicles to 30,000 kilometers.

The CEOs of Geely, Great Wall, and Chery have also warned that over-compression of development schedules risks turning consumers into real testers. The problem is that "Chinese speed" has become a central element of the industry's competitive model. Hundreds of models and updates are released annually, while weak domestic demand, rising costs, and intense price competition make it difficult for manufacturers to slow down. Regulators seem ready to allow companies to further accelerate the development of software and digital technologies, but make it clear that the equipment on which security depends needs to be more thoroughly checked. In this way, larger manufacturers with higher capital can gain an advantage as compliance costs rise. Artificial intelligence should still help Chinese automakers maintain shorter development cycles, but physical testing and safety checks will remain mandatory.