BEIJING, Feb 28 (Reuters) - Autonomous driving-related

over-the-air software upgrades will be subject to regulatory

approvals, China's industry ministry said on Friday, part of new

regulations aimed at preventing automakers using them to conceal

defects or avoid liability.

Electric vehicle makers including Tesla and Xiaomi ( XIACF )

have used OTA upgrades to fix software bugs. Such

upgrades are called product recalls under China's regulation,

but it's often unclear if drivers might need, or would be

eligible, to return vehicles to the automakers for refunds.

Those planning OTA upgrades to eliminate product defects and

implement recalls should "immediately stop the manufacture and

sales of defective automobile products," the regulation

stipulates.

If changes to the main technical parameters are needed to

fix the defects, automakers are required to obtain a license for

the product change before resuming their production of the

affected vehicle.

Automakers are banned from naming and marketing driving

assistance systems with hints to consumers that they can be used

as autonomous driving systems, according to the regulation.

They are also required to report to the industry ministry

and the market regulator in case of driving assistance system

failure or collisions and other accidents.