Physix Frontier · News Briefing Card (TMTPost · Aug 30, 2026)

Draft Law Shifts L3 Liability to Automakers

KEY FACTS

On August 25, a draft revision of the Road Traffic Safety Law was submitted for review, introducing special provisions for autonomous driving for the first time.
When Level 3 or higher functions are active, administrative liability for traffic violations shifts to the manufacturer or importer.
The draft introduces a reversal of the burden of proof, requiring automakers to demonstrate that violations were unrelated to the autonomous system.
In Level 2 and lower assisted-driving scenarios, the driver remains the primary responsible party.
As of July 2026, the penetration rate of Level 2 intelligent driving in China reached 70.5%, while Level 3 models remain extremely rare.

KEY DATA

70.5%L2 Intelligent Driving Penetration Rate

34.2%NOA Function Penetration Rate

PHYSIX OBSERVATION

The law establishes the principle that 'system dominance equals manufacturer liability,' ending an era of ambiguous responsibility. However, given that Level 2 remains the market mainstream and Level 3 approval is stringent, most owners cannot yet benefit from this shift. Automakers will likely tighten functional boundaries to mitigate risk, with 'zero takeover' advertising becoming potential evidence against them. Consumers must not misinterpret this as comprehensive indemnification; vigilance during human-machine co-driving periods cannot be lowered.

Source: TMTPost report