BYD will pay you if their autonomous car’s algorithm fails

As automakers race to develop self-driving features, few are willing to take legal responsibility for what happens when their systems fail. Tesla, for instance, sells its "Full Self-Driving" (FSD) as a beta product, while clearly stating that the driver must remain in control and is solely responsible for any consequences.

Chinese electric vehicle manufacturer BYD, however, has recently taken a different approach.

The company has announced that it will provide a public guarantee for its autonomous parking system. If the system causes damage — even due to software failure — BYD will cover the costs. This includes repairs, third-party property damage and compensation for injuries.

In a statement on the Chinese social media platform Weibo, BYD said, "We are first in the world to propose a guarantee for autonomous parking," describing the move as a show of confidence in its God's Eye ADAS system.

The guarantee is being introduced through an over-the-air software update. The new version, named God's Eye B, aims to improve parking performance in various conditions. It also adds features such as U-turn assistance, multi-speed parking and bypass manoeuvres.

While most manufacturers issue legal disclaimers to avoid liability, BYD's decision places accountability on the company itself. For years, safety advocates have warned that autonomous features were being released without clear rules on responsibility. This could be the first significant case of a manufacturer assuming legal and financial risk for its automation.

At present, the guarantee applies only in China. However, BYD's growing presence in Europe and Latin America raises questions about whether it will extend this policy to other markets. If so, competitors may come under pressure to follow suit.