SHANGHAI, Dec 12 (Reuters) – China’s Geely Auto on Friday launched a $284 million facility providing safety tests for the automotive industry in general in anticipation of growing demand at home and abroad from regulators and consumers for improved vehicle quality and reliability.
Geely’s focus on safety comes as China’s auto industry grapples with a prolonged price war, prompting manufacturers to prioritise cost cuts and speed of development, in turn raising concerns about product quality.
The Geely Safety Centre, in the eastern city of Ningbo, will conduct 27 types of tests. Li Chuanhai, vice president of Geely Auto, said this will position Geely as a global leader in safety standards for key technologies in intelligent and electrified vehicles.
Battery safety and the reliability of intelligent features, such as advanced driving assistance systems (ADAS), remain top priorities for consumers, which the new facility will help address, Li told Reuters.
Chinese automakers’ overseas expansion could expose them to different types of regulatory scrutiny.
“With some high-profile incidents and stricter national regulations (in China), I believe consumers are becoming more aware of safety, which influences their purchasing decisions and guides the industry’s development,” Li said.
Media reports about a fatal accident in March involving a Xiaomi SU7 electric sedan went viral on Chinese social media, prompting widespread questions about the safety of electric cars and smart driving.
Chinese regulators have since tightened oversight on battery-powered cars, leading to an increase in recalls by local brands this year.
Xiaomi fixed a safety flaw in its ADAS system via a remote software update in September after a regulatory investigation. BYD has also recalled more than 210,000 vehicles this year, including nearly 7,000 of its plug-in hybrid off-road SUVs, after regulators found safety defects.
($1 = 7.0555 Chinese yuan renminbi)
(Reporting by Zhang Yan, Casey Hall. Editing by Jane Merriman)
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