Who Is in Control? Ethical Challenges of Autonomous Driving in Chinese EV Market

China’s EV makers increasingly promote self-driving features as a competitive advantage. However, a fatal crash involving such a vehicle raises ethical questions about marketing claims and ethical responsibility in autonomous driving.

Dr. Anlan ZHANG | Lee Shau Kee School of Business and Administration, Hong Kong Metropolitan University
Muthita KANWERAYOTHIN | Nikkei BizRuptors

Published On 24 Jan 2026

Last Updated On 24 Jan 2026

At a glance

Industry Revenue

US$ 557.4 billion

(2025)

Vehicles Produced in China

31.282 million

(2024)

Vehicles Sold in China

31.436 million

(2024)

Case Focus

Business Ethics, Marketing Ethics

Abstract

China’s electric vehicle (EV) industry has rapidly expanded over the past decade, becoming one of the world’s largest and most competitive markets. In this intense environment, automakers race with aggressive price cuts, sales strategies, and advanced technological features, with autonomous driving and Advanced Driver Assistance Systems (ADAS) increasingly becoming standard features across models ranging from budget to luxury vehicles. However, a fatal car crash involving a Navigate on Autopilot (NoA) feature in 2025 drew public and regulatory attention to several modern ethical concerns regarding the development and deployment of such technologies.

This case study draws on established ethical theories, including utilitarianism and deontological ethics, as well as perspectives on manufacturer responsibility based on contractual, due care, and social cost views. Using the Xiaomi SU7 crash as a focal point, the case puts autonomous driving technology within the broader context of China’s EV market, regulatory environment, and the technical limitations of Level 2 automation. It invites readers to analyze and discuss ethical issues related to algorithmic decision-making, marketing practices, consumer protection, and responsibility and accountability from both manufacturer and consumer perspectives, and to consider more morally responsible approaches to technology design, communication, and regulation in an evolving and innovation-driven industry.
 


Cover Photo: Shutterstock
 

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