Can car companies no longer OTA as they please in the future?

Author: James Yang Jianwen

On August 12th, the Ministry of Industry and Information Technology released the “Opinions on Strengthening the Management of Intelligent Connected Vehicle Production Enterprises and Products Admission” (hereinafter referred to as the “Opinions”), which contains a wealth of information and has attracted widespread attention.

The most important piece of information is that before implementing online upgrade activities, enterprises should ensure that their automobile products comply with national laws and regulations, technical standards, technical specifications, and other relevant requirements and record them with the Ministry of Industry and Information Technology. Technical parameter changes related to safety, energy saving, environmental protection, theft prevention, and other areas should be reported to the Ministry of Industry and Information Technology in advance to ensure the consistency of automobile product production. Without approval, automobile autonomous driving functions cannot be added or updated through online software upgrades.

This also means that the country is standardizing OTA upgrades and automobile manufacturers can no longer push OTA upgrades at will.

Let’s start with a brief definition. What is OTA Upgrade?

Automotive over-the-air remote upgrade (OTA) mainly consists of two types: software-over-the-air (SOTA) and firmware-over-the-air (FOTA).

SOTA is a software update, which refers to upgrades related to information and entertainment functions, mainly targeting the in-vehicle infotainment system. FOTA is a firmware update, which involves upgrading the entire vehicle system firmware, optimizing control through improvements to the electric motor, battery pack, and other components, to improve overall vehicle performance and optimize driving range.

OTA can be used to optimize the current user experience or solve vehicle defects discovered online through OTA upgrades, providing a cost-effective way of providing after-sales services. OTA can also create new business opportunities for automobile manufacturers.

The Dark Side of OTA Upgrades

OTA upgrades have injected new imagination into the automotive industry. However, on the other hand, automobile manufacturers have abused it: manufacturers can push OTA upgrades anytime, without informing users what exactly has been updated. In some cases, OTA upgrades are used to evade responsibility.

For example, the recent locked battery incident. In early August, a user of a Guangqi Toyota iA5 vehicle filed a complaint letter with the Quality Development Bureau of the State Administration for Market Regulation, stating that “Guangqi Toyota Motor Co., Ltd. secretly downgraded the automobile power battery capacity (battery lock) of a large number of Guangqi Toyota iA5 vehicles manufactured before June 2020, and limited the vehicle output power to no more than 60% (power lock) through back-end OTA upgrades without informing customers or obtaining customer consent.”

“After OTA upgrade, the battery capacity of Guangqi Toyota iA5 was reduced by nearly 10 kWh, from the original 58.78 kWh, resulting in a decrease in the actual mileage by nearly 100 kilometers.”

Last month, a Guangqi Toyota iA5 caught fire during charging, and the owner suspected that Guangqi Toyota used OTA upgrades to conceal vehicle defects and avoid recall responsibilities, while severely infringing on user privacy.

“Complaints against OTA broke out in August, and on August 12, this file on OTA regulations came down, which inevitably makes people think about the two incidents.”

Previously, Tesla had also experienced a similar incident. After multiple cases of Model S catching fire in 2019, Tesla used OTA upgrades to lock the available energy of the first generation of Model S, while also reducing the charging speed to avoid thermal runaway risks. However, for users, the available mileage would be reduced, affecting the driving experience.

because of this, Tesla was sued, and in May of this year, the matter was settled, with Tesla paying $1.5 million in compensation (including $410,000 in attorney’s fees, with each owner receiving $625). However, domestic users can only turn a blind eye to it.

There are actually many similar incidents. Moreover, as smart connected vehicles become more common, related issues will also increase.

Now, the Ministry of Industry and Information Technology (MIIT) has issued this file to fill the gap.

Car companies can no longer upgrade OTA at will

As early as November last year, the State Administration for Market Regulation issued a notice on further strengthening the supervision of automotive remote upgrade (OTA) technology and recall, which made very clear specifications for recalling operations using OTA upgrades to eliminate vehicle defects.

“If OTA upgrades are used to eliminate automotive product defects, it is also a form of recall.” The document also makes clear provisions for OTA recalls: “If OTA upgrades fail to effectively eliminate defects or cause new defects, the manufacturer shall take recall measures again.”

“This also marks the first step for car companies to have no more excuses using OTA upgrades as a product defect.”

The “Opinions” document from the Ministry of Industry and Information Technology is more extensive in its scope of regulation than the “Notice”:

Automotive companies now need to report not only recalls but also any OTA upgrades, and for any technical parameter changes related to safety, energy conservation, environmental protection, theft prevention, etc., reporting must be done in advance.

In addition, automotive companies are required to establish and improve automobile data security and network security management systems. Personal information and important data generated by intelligent vehicles must also be kept within the country. If data needs to be provided overseas, a data exit security assessment must be conducted.

Furthermore, numerous restrictions have been imposed on the OTA and related content for intelligent driving. “New or updated automotive autonomous driving functions through online or other software upgrade methods may not be added without approval.”

This is probably the first time that the state has made such restrictions on intelligent driving at the policy level.

In summary, the state is now “establishing industry standards for OTA upgrades.”

In the long run, this is a good thing. It can ensure that OTA technology is not abused, protect consumer rights, and make companies assume their due responsibilities, guiding the industry towards better development.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.