(Yicai Global) April 27 -- A little more than 23 percent of new passenger cars sold in China in the first quarter were equipped with Level 2 self-driving systems, according to a new report from market intelligence provider International Data Corporation.

L2 is now available in 35 percent of new energy vehicles, much higher than the almost 20 percent rate among fossil fuel-powered cars, the report released today also showed. With the rapid growth in NEVs, the L2 penetration rate will increase, it added.

L2, or advanced driver assistance systems, means a vehicle can control steering, acceleration and braking in certain situations, but the driver must be ready to take the wheel.

Fuel-driven vehicles account for 67 percent of the L2 market, and the main brands include Toyota Motor, Honda Motor, and Nissan, IDC said. NEVs make up 33 percent, of which traditional car companies, including BYD, GAC Aion and Volkswagen, account for 11 percent, and NEV startups such as Tesla, Li Auto and Xpeng Motors account for 22 percent.

Among traditional automakers, Toyota models priced at more than CNY100,000 (USD15,254) are equipped with L2 except for a few entry-level versions, while only high-end or top-end versions of Honda models have it. Toyota’s TSS, or Toyota Safety System, and Honda Sensing still position L2 as an autonomous driving assist system.

As for NEV startups, Tesla and Li Auto equip their products with L2 systems, Xpeng’s covers up-market versions, and Nio equips all of its high-profile models with the full version and low-profile vehicles with optional functions, per the report.

Car production has been hit by the recent resurgence of Covid-19, and that is expected to have a short-term impact on the penetration rate of L2, IDC noted.

According to the China Passenger Car Association, sales in the first quarter tallied almost 4.92 million cars, down 4.5 percent from the same period a last earlier. Of that, 1.07 million were NEVs, a gain of 147 percent from a year ago.

Editor: Peter Thomas