MIIT Launches Oversight Checks on GAC Aion and XPeng for Production Consistency and Safety Assurance

On July 24, 2024, the Equipment Industry Department I of China’s Ministry of Industry and Information Technology (MIIT) conducted on-site inspections at GAC Aion and XPeng’s Zhaoqing vehicle manufacturing facilities to examine their capabilities in product safety assurance and production conformity as required for road motor vehicle manufacturers. The inspection focused on key areas including intelligent connected vehicle safety assurance capabilities, design and development capacities, production capabilities, and the maintenance of production conformity—core conditions for maintaining manufacturing authorization. During the inspection, sample vehicles and traction batteries were randomly selected on-site and sent to designated testing institutions for compliance verification against national standards. Prior to this, market rumors suggested the inspection might be linked to quality issues concerning the 177Ah lithium iron phosphate (LFP) battery cells supplied by CALB (China Aviation Lithium Battery Co., Ltd.). These battery cells had been used in GAC Aion’s S-series models, with some vehicles reportedly experiencing problems such as swollen battery packs, electrolyte leakage, and sudden power loss during driving. CALB supplies battery products to both GAC Aion and XPeng, both of which were included in this round of inspections. In response, an insider from GAC Aion stated they had not heard of any direct connection between this inspection and specific battery-related issues, suggesting it could be part of routine industry-wide oversight. Similarly, an internal source from XPeng indicated that similar inspections might soon extend to additional automakers of significant scale. This enforcement action followed a seminar convened by MIIT’s Equipment Industry Department I on July 17, 2024, with major automotive manufacturers. The meeting outlined key priorities, including standardizing industrial competition, enhancing production conformity and product quality and safety, and identifying potential safety risks. It was explicitly stated that MIIT would collaborate with relevant authorities to launch a joint initiative focusing on improving production conformity and quality of road motor vehicles, strengthening innovation-focused design approval reviews, test validation procedures, and oversight of testing and certification institutions. Enterprises or institutions found non-compliant will be dealt with strictly in accordance with laws and regulations to uphold the fundamental safety standards of automotive products.