BAIC BluePark, Changan Shares Rise After Regulatory Approval for Level 3-Equipped Car Models

By Jiahui Huang

Shares of BAIC Motor's electric-vehicle subsidiary and Chongqing Changan Automobile rose after the automakers obtained permits for China's first two car models equipped with level 3 autonomous-driving capabilities.

China's Ministry of Industry and Information Technology said Monday that it granted conditional approval for two passenger car models by BAIC Motor and Changan, enabling the carmakers to begin road trials.

A Changan full-electric model and BAIC's Arcfox full-electric model were granted approval for limited level 3 autonomous driving, which means the vehicles can handle all driving tasks under specific conditions, and only require intervention by the human driver when requested.

Changan's shares rose 4.7% in Hong Kong trading and BAIC BluePark New Energy Technology rose 10% to its daily limit in Shanghai. The Hang Seng Index and the Shanghai Composite Index were down 2.0% and 1.1%, respectively.

The regulatory approval marks a key step toward L3 commercialization for passenger cars, Daiwa analysts said in a note. Around 1% of passenger vehicles sold in China will have L3 capability this year, corresponding to around 257,000 units, according to Daiwa's forecasts.

Currently, most cars in China equipped with advanced driver assistance systems have level 2 technology, wherein the human driver needs to keep their hands on the steering wheel while the ADAS can conduct basic driving functions such as changing lanes, accelerating and decelerating.

Chinese authorities and automakers have been pushing for more advanced autonomous-driving technology in recent years, viewing the technology as the next frontier of competition for the EV space.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

December 16, 2025 02:44 ET (07:44 GMT)