HANGZHOU, China (Reuters) -Chinese automakers Zeekr Group and Xpeng ( XPEV ) said on Tuesday they would start selling electric vehicles equipped with technology that will allow drivers to take their hands off the steering wheel, heating up a smart driving tech war.

The companies, along with Guangzhou Automobile Group (GAC), made separate announcements that they would roll out models with so-called L3-ready autonomous driving capabilities, a shift for the sector that has so far only had L2 systems.

Zeekr said it would officially unveil its 9X sport utility vehicle with the technology at the Shanghai autoshow in April and start deliveries in the second half of 2025. Xpeng ( XPEV ) told a post-earnings analyst call it would achieve L3-level software capabilities in the second half of the year and would start to mass-produce models with L4-ready technology in 2026.

Meanwhile, GAC said at a company event it would start selling L3-ready models in 2025 and was also working on L4 models, local media reported.

The auto industry has defined five levels of autonomous driving, from cruise control at level one to fully self-driving cars at level five, and level three means cars can drive without a human driver's supervision. In reality, this means drivers can take their eyes off the road and hands off the wheel for extended periods, but are expected to be able to take over in seconds.

Level three technology has so far only been used on a trial basis worldwide. China in June allowed a first group of nine automakers including BYD and Nio, as well as major state-owned manufacturers such as Changan Automobile and GAC, to carry out tests on level three vehicles on public roads.

The tests are seen as a must for regulators to approve the cars for public sale and business operation in China, and Zeekr, Xpeng ( XPEV ) and GAC will need regulatory approval before drivers will be able to use the level three features in their cars.

The announcements point to how a two-year-long brutal price war in China, the world's largest auto market, is evolving to become one focused on technology.

Smart driving technology used to be offered as a premium feature for cars, but Chinese electric vehicle giant BYD last month said it would offer such systems on most of its line-up at no additional cost, prompting a slew of companies to follow suit.

According to Chinese laws, automakers will take legal responsibility for traffic accidents in the event of level three system failures, and drivers are still required to maintain constant attention and take control of cars with level two capabilities, such as Tesla's Full Self-Driving.

Zeekr's CEO told reporters that the 9X SUV will be equipped with five lidars and a driving domain controller powered by two Nvidia Thor chips, which CEO Andy An said would hike costs significantly but were necessary to ensure safety under level three.