BYD to start testing L3 autonomous driving on highways in China
Competition to advance L3 autonomous driving technology is revving up in China, as a fresh batch of automakers is now being allowed to test their self-driving systems on highways and expressways. Among the latest is Chinese vehicle giant BYD, which has joined Mercedes and BMW in receiving permits to test their L3 technology on high-speed roads.
BYD just announced that it has received permits to test vehicles with L3 autonomous driving systems on high-speed roads in Shenzhen. The automaker was first granted a license to do so in China on July 21, which the company said in a statement on its official Weibo account. Reuters reported that, earlier this month, BMW Group also said that it had received a test license for L3 self-driving on highways in Shanghai. Mercedes Benz just announced that it too plans to carry out L3 autonomous testing on designated highways in Beijing.
A pioneer in L3 autonomous driving, Mercedes-Benz recently unveiled its Drive Pilot system in the US and European markets as the world’s first certified SEA Level 3 system, and the only one capable of being deployed in the US. Its Drive Pilot, available for the S Class only, is legally approved for testing in very limited regions, Nevada, California, and Germany with expansion expected soon. In China, the company is now adapting its L3 systems to China’s infrastructure and traffic conditions, where it has been testing on closed roads since 2021. Since then, the research team has been making continuous improvements “by adapting to local road signs and markings and optimizing algorithms,” according to China Daily.
IM Motors, the electric vehicle brand of stated-owned SAIC Motor and e-commerce giant Alibaba, has also applied to the government for product entry of L3 cars, with the company saying its models are among the first to enter the country’s L3 pilot program, according to Reuters. IM Motors announced last week that it too was granted permission to test L3 vehicles on high-speed roads in Shanghai, alongside BMW.
The jump from L2 to L3 is a huge upgrade, with the automakers essentially taking on the responsibility for traffic accidents in place of the driver, which signals a crucial shift from assisted to automated driving. SEA Level 3, known as “conditionally automated driving,” grants drivers the freedom to do other things, while the technology manages most aspects of driving, including watching the road and monitoring traffic situations without human intervention. Human drivers are, of course, required to take the wheel when summoned.
China, the world’s largest vehicle market, has also granted permits to automakers Arcfox and Deepal to test their L3 systems on closed roads in the country.
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Remember HiPhi, the ultra-futuristic EV brand led by Human Horizons? It’s been over a year since the company went on a six-month hiatus after failing to find additional funding, but it has reportedly found a savior in a Lebanese investor called EV Electra. EV Electra is taking over a majority stake and plans to resume vehicle development and production in China immediately.
HiPhi was a radical EV marque founded by Chinese startup Human Horizons over five years ago. The startup wowed us early on with a production-ready version of its flagship model, the HiPhi Z GT, complete with automatic suicide doors and a robotic touchscreen that moves independently.
The Z was joined by two robot-centric EV models, the HiPhi X “Super SUV” and the HiPhi Y “LuxTech SUV,” The Z and X EVs were actually certified for sale in Europe while Human Horizons teased a fourth model – a carbon fiber hypercar called the HiPhi A.
In early 2024, HiPhi showed its EV models weren’t just about robotic arms and futuristic designs, but could actually perform. The HiPhi Z shone during a winter range test in total distance traveled on a single charge and had the lowest range loss compared to what its makers advertised.
Shortly thereafter, however, things went dark. During Chinese New Year, HiPhi announced a six-month shutdown while it searched for more funding. Human Horizons would fail in its search, resulting in the layoffs of most of its staff. That was over a year ago, but the lights at HiPhi’s Chinese manufacturing facility look like they’re about to be turned back on by a foreign financial backer with a cloudy history of its own.
EV Electra already has HiPhi models on its website
As reported by local Chinese media outlet 21jingi, multiple independent sources have stated that HiPhi has received an investment of $100 million from EV Electra, a Lebanese company founded in 2017 by Jihad Mohammad, claiming on its official website to be “the first electric car manufacturer in Lebanon and the Arab world.”
The reports appear accurate, as HiPhi’s three production models now appear on EV Electra’s website (pictured above). According to independent sources, EV Electra intends to help HiPhi maintain its previous production capacity of 150,000 units per year at its facility in Yancheng, Jiangsu province, China.
Furthermore, that facility has reportedly already begun the necessary environmental assessment to resume EV production. Former HiPhi employees who did not sign a voluntary resignation agreement are reportedly being invited back to the company, but they are expected to see a 20% pay cut.
As of May 2022, Jihad Mohammad is the legal representative for HiPhi. EV Electra Ltd. owns 69.8% of the brand, while Human Horizons maintains the remaining 30.2%.
EV Electra’s website is quite confusing as it states it has a presence in Canada, Italy, Germany, Turkey, and China, yet its locations page lists footprints in Montreal, Lebanon, and Sweden. In 2023, Swedish media accused EV Electra of passing images of other OEMs’ vehicles off as its own, including the Skywell ET5, the K-1 Attack Rise, and SP:01 from Detroit Electric.
Per its website, EV Electra currently offers four very different models, which are built in Italy, specifically for Lebanon, I believe? This company is unique and confusing, to say the least. Hopefully, HiPhi has found a savior in EV Electra in a deal that works out for both parties. I’m not optimistic at this point.
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In a “watershed moment,” BYD outsold Tesla in Europe after EV registrations surged over 350% in April. With its top-selling electric car launching this week, this could be just the start.
BYD expands in Europe as EV registrations rise in April
After crushing the competition in China, BYD is now becoming a global phenomenon. Last month, it outsold Tesla for the first time in Europe as several new EV models hit the market.
According to new data from Jato Dynamics, BYD’s registrations in Europe increased by 359% in April compared to last year.
Although those numbers include EV and plug-in hybrid (PHEV) models, even if you look at purely electric registrations, it’s clear that BYD is quickly outpacing the competition.
BYD registered 7,231 EV models in Europe last month, an increase of 169% compared to April 2024. On the other hand, Tesla registered 7,165 EVs in April, down 49% from last year.
“Although the difference between the two brands’ monthly sales totals may be small, the implications are enormous,” Felipe Munoz, Global Analyst at JATO Dynamics, explained. Munoz called it “a watershed moment for Europe’s car market.”
BYD officially began selling vehicles in Europe in late 2022, while Tesla has led the European electric vehicle market for years.
Last month, the top registered EVs in Europe included the Skoda Elroq (1), Volkswagen’s ID.3 (2), ID.7 (3), ID.4 (4), and the Kia EV3 (5).
Tesla’s Model Y was the ninth most registered EV in April, with 4,495 registrations, down 53% from last year. The Model 3 came in at number 24, with 2,604 registrations, down 41%. No BYD models placed in the top 25.
Just yesterday, BYD launched what could be its biggest hit so far in Europe, the Dolphin Surf. The Dolphin Surf is the European version of BYD’s best-selling EV, the Seagull, which is sold for under $10,000 in China.
The compact electric city car starts at 19,990 euros ($22,700), undercutting top-sellers including the VW ID.3, which starts at around 30,000 euros ($34,000).
The Dolphin Surf is the latest to join BYD’s rapidly expanding European EV lineup, which now includes a full lineup of premium models (Denzda), ultra-luxury (Yangwang), SUVs, sedans, and entry-level vehicles.
Electrek’s Take
To be fair, Tesla is still ahead of BYD in Europe by a wide margin through the first four months of 2025. However, BYD will likely see more demand with new vehicles rolling out throughout the year.
S&P Global Mobility expects BYD to more than double its sales in Europe in 2025 to around 186,000 units. By the end of the decade, BYD’s volume in Europe could reach around 400,000.
While Tesla faces slower sales over CEO Elon Musk’s political stunts and support for US President Donald Trump, BYD is taking advantage. And it’s not just in Europe.
Earlier this month, BYD had its best sales week of the year in China, with nearly 68,000 registrations from May 5 to May 11. Tesla had just over 3,000 registrations during the same week.
Will BYD continue gaining ground on Tesla and other global automakers with new vehicles rolling out? Let us know your thoughts below.
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