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Source: People's Republic of China – State Council News
Beijing, January 26 (Xinhua) — The eastern Chinese metropolis of Shanghai has demonstrated its commitment to becoming a national leader in autonomous driving development, recently unveiling an ambitious "Model Speed and Intelligent Mobility" action plan in designated areas. The program aims to elevate the industry's technological level to a new level: by 2027, the city plans to widely deploy fully autonomous vehicles (Level 4) in passenger and freight transportation. Driverless buses and taxis are expected to carry over 6 million passengers, while heavy-duty autonomous trucks and other similar vehicles will transport 80,000 standard containers (TEU, or twenty-foot equivalent unit).
This step was made possible by a nationwide technological breakthrough: in December 2025, the Ministry of Industry and Information Technology of the People's Republic of China issued the first operational permits for models with L3 partial autonomous driving. Two certified models, adapted for urban traffic and highways, were approved for testing in Beijing and Chongqing. On January 10, 2026, the practical testing phase began in Beijing: 30 Arcfox Alpha S vehicles (L3 version) with special Z-series license plates took to the Beijing-Taipei Expressway, the northern section of the highway leading to Beijing Capital International Airport, and the Daxing International Airport Expressway.
"This means that the era of autonomous vehicles truly arriving on the road and being used commercially is upon us," said Zhang Guofu, Chairman of BAIC New Energy. Automotive industry experts note that by 2026, the penetration rate of L3 vehicles could reach the "zero to one" point, while L4 technologies are approaching mass commercial adoption.
OPEN TESTING ZONES
To achieve these goals, Shanghai is significantly expanding the areas and scenarios for the use of autonomous vehicles. According to the plan, by 2027, the area of test sites open to autonomous vehicles will reach 2,000 square kilometers, with the length of associated roads exceeding 5,000 kilometers. Particular attention is being paid to the "five new towns" (Shanghai's Jiading, Qingpu, Songjiang, Fengxian, and Nanhui districts), as well as airports and railway stations, where innovative autonomous driving solutions will be tested. Furthermore, the metropolis is prepared to explore standards and operational models for autonomous courier and inspection vehicles, as well as automated parking systems.
Ge Lei, General Manager of the Innovation Department at Dazhong Transportation, said the company had previously been hesitant about investing in L4 vehicles, but now has confidence in increasing its investment. "The new regulations have given us confidence. With their implementation, the scale of autonomous vehicles in Shanghai will grow, and we will find a sustainable business model," he noted. He added that the new policy also plays an important role in educating and popularizing relevant knowledge, allowing citizens to better understand and trust autonomous vehicles.
It's worth emphasizing that Shanghai is already taking the first steps toward commercializing the technology. In July 2025, the city issued a batch of permits for demonstration operations of driverless vehicles. Since September 2025, demonstration operations of intelligent connected taxis have begun in designated areas of Shanghai's Pudong district, with the participation of Dazhong Transportation.
"By ensuring safety, we hope to expand the scale and geography of robotaxis trials, as well as explore the potential for their use in servicing airports and high-speed rail hubs for short trips," said Ge Lei, adding that robotaxis are increasingly integrated into urban life, enriching transportation options for residents and visitors to Shanghai.
SERIAL PRODUCTION OF L4 CARS
Shanghai isn't just limiting itself to testing—the city plans to ramp up the mass production of autonomous vehicles. By 2027, the share of vehicles with L2 assisted driving features and L3 systems in total new vehicle production is expected to exceed 90 percent, and L4 vehicles will also be mass produced.
At the same time, research and development work on software and hardware systems and technological solutions will be organized in Shanghai. These include high-performance automotive chips, on-board operating systems, intelligent computing platforms, and remote control systems.
Boonray Technology, a company developing driverless mining trucks, reported that the city plan is fully aligned with the company's own research strategy, bolstering the team's confidence in achieving technological breakthroughs. The new policy also supports collaboration between universities, research institutes, and key enterprises, accelerating the commercialization of research findings. This facilitates more open collaboration with partners across the entire value chain and jointly strengthens the intelligent driving industrial ecosystem in China.
INSURANCE SOLUTIONS FOR NEW PRODUCTS
To successfully implement driverless cars on a large scale, Shanghai plans to develop innovative insurance products that are tailored to technological innovations and the development of the autonomous driving industry.
The Chinese company Xinshiqi (Neolith), which produces driverless vehicles for cargo transportation and logistics delivery, announced that its vehicles are currently insured under a single policy issued by the company itself or its partners. Third-party liability insurance coverage is determined dynamically in accordance with local requirements and typically ranges from 3 to 5 million yuan (approximately $429,000 to $714,000).
An industry insider noted that smart connected taxis are still in the demonstration phase. Although they have insurance coverage, the type of insurance they receive differs from that of regular taxis. It's necessary to continue collecting statistical data and improving insurance products to fully meet the needs of their future regular commercial use.
China is doing everything possible to ensure that driverless cars are not just an experiment, but a common part of urban transportation. As the leader in China's autonomous driving industry, Shanghai has paved a clear path to the mass adoption of this technology. Its experience and practical results in the commercialization of driverless cars will become an important benchmark for the development of the global automotive industry in the coming years.
Please note: This information is raw content obtained directly from the source. It represents an accurate account of the source's assertions and does not necessarily reflect the position of MIL-OSI or its clients.