China makes cars so quickly that regulators are getting worried

Chinese automakers’ ambitions to shave even more time off their breakneck development speeds are facing a reality check as regulators ramp up scrutiny of the industry’s safety and testing.

As competition grows and margins get squeezed, the use of artificial intelligence could set a new industry standard of just 18 months for bringing a brand new model to market, according to an estimate from car designer IAT Automobile Technology and China’s Association of Automobile Manufacturers. That’s down from the current pace of around two years and compares with roughly three to five years for legacy foreign competitors.

But while China speed has set the new global benchmark and sent legacy brands into an existential fight for market share, it’s also fueled concerns that automakers’ rapid innovation could outpace both regulatory oversight and their own quality-control capacity. Within the industry, debate is growing around whether compressed timelines risk damaging the reputation of Chinese brands — particularly as they push into overseas markets like Europe — or simply showcase their competitive edge.

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Chinese regulators are pushing hard on safety, launching a yearlong campaign that includes surprise inspections at carmakers to address concerns that quality could deteriorate in the pursuit of speed. Their view is in line with recent comments from executives at Zhejiang Geely Holding Group, Great Wall Motor Co. and Chery Automobile Co., who have warned that the faster development times essentially turn customers into guinea pigs who test durability or safety in real time.

“Cars aren’t fast-moving consumer goods. They touch the safety of millions of families and must endure the test of diverse road conditions, climates, and driving habits worldwide,” Li Xueyong, vice-president at Chery, said in an Aug. 26 social media post. “There are simply some development timelines we cannot afford to shortcut.”

The tougher stance is part of a broader overhaul that’s already seen tighter regulations imposed on batteries, advanced driver-assistance technology and door handles in the wake of several high-profile, fatal accidents. The country is carrying out its largest vehicle recall ever, with Tesla Inc. and eight other carmakers set to fix more than 4.27 million electric vehicles to meet new door requirements.