China's first license plate for Level-3 autonomous driving was granted recently to China Changan Auto Group, a car manufacturer based in Southwest China's Chongqing, marking a landmark development for the country's automotive sector.

The license plate, Yu AD0001Z, was issued by the Chongqing Municipal Public Security Bureau's traffic management department on Saturday. It will be used on Changan's Deepal model.

This milestone not only places Changan at the forefront of the self-driving car industry, but also signals a pivotal shift toward the mass production and commercial rollout of autonomous vehicles in China, the group said.

Autonomous driving is categorized into six levels, from Level-0 to Level-5, with increasing technological sophistication. Level-3, or "conditionally automated driving", allows vehicles to perform automated dynamic driving tasks while requiring a human driver to remain available to take control when requested.

Earlier, on Dec 15, the Ministry of Industry and Information Technology granted road approval for two electric sedan models equipped with Level-3 autonomous driving capabilities, marking the first time that such vehicles have been permitted on public roads. The models were developed by automakers Changan Automobile and BAIC Motor's Arcfox.

Changan's NEV is capable of single-lane autonomous driving at speeds of up to 50 kilometers per hour during traffic congestion. It is approved to operate on select highway and urban expressway sections in Chongqing. The Arcfox NEV is permitted to operate autonomously at speeds of up to 80 km/h on designated highway and urban expressway sections in Beijing.

These advancements are invigorating the intelligent connected NEV sector, with industry leaders spearheading efforts from South to North China.

"Since the start of the 14th Five-Year Plan period (2021-25),Chongqing's intelligent connected new energy vehicle industry has entered the forefront nationwide," said Wang Zhijie, director of the Chongqing Economic and Information Commission, at a recent conference. He said Chongqing aims to build a world-class industrial cluster for intelligent connected NEVs in the next five years.

Changan is aiming to join the ranks of the world's top 10 carmakers by the end of the decade.

The company's transformation into a centrally owned enterprise underscores its strategic vision. "Our mission is clear — to build a world-class automotive group with proprietary core technologies and global competitiveness," said Zhu Huarong, chairman of the group, in July.

Under its roadmap, Changan is targeting annual vehicle sales of 5 million units by 2039, with NEVs comprising over 60 percent and overseas sales contributing more than 30 percent.

This strategy aligns with China's broader objective to cultivate globally competitive national champions in the electric and smart mobility sectors, heralding a transformative phase in automotive technology.