Chongqing - A new industry report released in Chongqing shows that China’s autonomous driving sector is moving from testing and pilot programs toward broader commercial deployment, while domestic suppliers are gaining ground in key areas such as chips and other core components.
The report was unveiled on August 20 at an automotive and motorcycle supply chain forum held during the 2026 Automotive New Quality Productive Forces Development Forum.
Zhang Jin, general manager of the Xinhua Credit division of China Economic Information Service, presents the Blue Book on the Scaled Application of Autonomous Driving in China (2026). (Photo/2026 Automotive New Quality Productive Forces Development Forum)
Zhang Jin, general manager of the Xinhua Credit division of China Economic Information Service, said China's autonomous driving sector is entering a new stage characterized by broader regulation, differentiated technology pathways and gradual commercialization across different driving automation levels.
The report said Level 2, or L2, driver-assistance systems are now widely used in passenger vehicles, while L3 conditional automation has entered initial vehicle-access pilot programs. L4 systems, which can perform driving tasks without human intervention in specified conditions, are being tested in applications including robotaxis and autonomous logistics vehicles.
More than 70% of passenger vehicles sold in China since the beginning of 2026 have been equipped with L2 driver-assistance systems, according to the report.
Urban NOA, or Navigation on Autopilot, an advanced driver-assistance function that can navigate vehicles through complex urban routes under driver supervision, has reached a penetration rate of more than 20% in new vehicles and is increasingly appearing in models priced below 200,000 yuan (about 29,747 U.S. dollars).
The report said China has also made progress in developing its own autonomous-driving supply chain.
Horizon Robotics, a Chinese artificial intelligence company, focused on automotive computing solutions, including chips and software platforms for advanced driver-assistance systems and autonomous driving.
The company has developed its Journey series of automotive AI processors, which are designed to provide the computing capabilities needed for functions such as intelligent cockpit systems, highway assistance and urban driving assistance.
In the first half of 2026, Horizon Robotics held a 31.94% share of the driver-assistance chip market for Chinese-brand passenger vehicles across all automation levels, ranking first ahead of Nvidia, according to data cited in the report.
For chips supporting higher-level urban NOA functions, Horizon held a 22.82% share, ranking second behind Nvidia following large-scale production of its Journey 6 series.
Domestic suppliers also accounted for more than 60% of China's lidar market, while locally produced brake-by-wire systems and domain controllers have expanded their presence, the report said.
The industry is developing a layered technical model in which intelligence built into individual vehicles forms the foundation, supplemented by communication between vehicles, roads and cloud systems.