(Yicai Global) March 29 -- China hopes to start mass producing smart vehicles by 2020 so that it can address such problems as traffic safety, congestion, pollution and other problems brought about by being the world's largest auto market.

China is formulating intelligent vehicle policies and by 2020, will have a systematic framework in place, state-owned news agency Xinhua quoted Nian Yong, director-general of the National Development and Reform Commission's department of industry coordination, as saying at a seminar in Beijing. The framework will cover innovation, road networks, laws, product supervision and data protection.

Sweden-based Volvo Car AB, which was acquired by Zhejiang Geely Holding Group Co. in 2010, will begin mass producing SAE Level 4 self-driving cars by 2021, Geely Chairman Li Shufu said at the seminar. SAE International, formerly the Society of Automotive Engineers, defines Level 4 vehicles as those which can drive themselves safely under most conditions without the need for human intervention.

The NDRC, China's top price-setter and economic planner, unveiled plans in January to become a global smart vehicle powerhouse by 2035. Beijing, Shanghai and Chongqing, which are all direct-controlled municipalities, have already rolled out their first laws and regulations for testing intelligent cars.